India’s top court has refused to allow the
entry of foreign law firms wanting to practise law in Indian
courts.
Foreign lawyers can only advise their clients
in India on matters pertaining to foreign laws on a temporary “fly
in, fly out basis”.
“Fly in and fly out would cover a casual visit
and not amount to practice,” Justice Adarsh Kumar Goel was quoted
as saying by Indian news media on Tuesday.
The court has directed the Bar Council of India and the Indian
government to frame rules for foreign lawyers advising Indian
clients.
Joseph Pookkatt, partner at APJ-SLG Law firm in New Delhi, said
the ruling “essentially means that foreign lawyers cannot set up
shop in India”.
“The concept of ‘fly in and fly out’ means that in case foreign
lawyers need to render legal advice to their clients in India, they
can come to India, meet their client, render advice and then fly
out without establishing any sort of permanent establishment in
India,” he told Al Jazeera.
“But only lawyers registered with the Bar Council of India and
governed by the Advocates Act can practise law in India.”
No ‘carte blanche’
The Bar Council of India (BCI) has been averse to the idea of
opening up the legal field to foreign players.
The BCI has said it does not want to give foreign arbitrators a
free run in the country.
“They can’t have a carte blanche, do what they wish,” CU Singh,
a senior lawyer appearing for the BCI, had argued.
In a special India report, global law firm White & Case had
warned that foreign business companies should structure contracts
in a way that disputes are resolved through offshore mediation,
possibly through non-Indian courts.
“Even when Indian law is the basis of the contract, it is
important to agree to settle disputes through arbitration seated
outside India,” said the report titled Navigating India: Lessons
for foreign investors.
The firm had also referred to judicial delays while resolving
business disputes in Indian courts. Some take as long as a
decade.
There are more than 30 million pending cases in Indian courts,
according to recent government data.
“The Indian government and the Bar Council of India should work
together to eke out rules and regulations that would frame work of
foreign legal counsel in India, preferably on reciprocal basis. If
an Indian lawyer appears in a foreign court, what are the rules
governing his practice? It should be reciprocal,” Pinaki
Mishra, a senior Indian Supreme Court lawyer and Member of
Parliament, told Al Jazeera.
Rules for foreign lawyers
The Indian government had earlier asked the Bar Council of India
to frame rules for foreign lawyers in India.
“We want foreign lawyers to come so as to not deny the Indian
advocates of the same privilege in other countries. If the BCI does
not frame the rules, the Central government would take it upon
itself to stipulate the rules,” Maninder Singh, India’s additional
solicitor general, appearing for the government, had argued in
the court earlier.
Dushyant Dave, a senior Indian Supreme Court
lawyer, representing the London Court of International
Arbitration, had argued for rejecting the plea that foreign lawyers
cannot practise in India.
“Today the world is globalised. India can’t stay away from the
rest of the world. Even a communist country like China has allowed
foreign law firms into the country. India needs to let foreign
lawyers practise here because of our commitment to the WTO that we
would open up legal services in India,” Dave told Al Jazeera.
“India also really need FDI. Those who are going to invest their
precious capital in technology would need it to be safeguarded.
They would be more comfortable with their own lawyers working
here.”
India’s top court has refused to allow the
entry of foreign law firms wanting to practise law in Indian
courts.
Foreign lawyers can only advise their clients
in India on matters pertaining to foreign laws on a temporary “fly
in, fly out basis”.
“Fly in and fly out would cover a casual visit
and not amount to practice,” Justice Adarsh Kumar Goel was quoted
as saying by Indian news media on Tuesday.
The court has directed the Bar Council of India and the Indian
government to frame rules for foreign lawyers advising Indian
clients.
Joseph Pookkatt, partner at APJ-SLG Law firm in New Delhi, said
the ruling “essentially means that foreign lawyers cannot set up
shop in India”.
“The concept of ‘fly in and fly out’ means that in case foreign
lawyers need to render legal advice to their clients in India, they
can come to India, meet their client, render advice and then fly
out without establishing any sort of permanent establishment in
India,” he told Al Jazeera.
“But only lawyers registered with the Bar Council of India and
governed by the Advocates Act can practise law in India.”
No ‘carte blanche’
The Bar Council of India (BCI) has been averse to the idea of
opening up the legal field to foreign players.
The BCI has said it does not want to give foreign arbitrators a
free run in the country.
“They can’t have a carte blanche, do what they wish,” CU Singh,
a senior lawyer appearing for the BCI, had argued.
In a special India report, global law firm White & Case had
warned that foreign business companies should structure contracts
in a way that disputes are resolved through offshore mediation,
possibly through non-Indian courts.
“Even when Indian law is the basis of the contract, it is
important to agree to settle disputes through arbitration seated
outside India,” said the report titled Navigating India: Lessons
for foreign investors.
The firm had also referred to judicial delays while resolving
business disputes in Indian courts. Some take as long as a
decade.
There are more than 30 million pending cases in Indian courts,
according to recent government data.
“The Indian government and the Bar Council of India should work
together to eke out rules and regulations that would frame work of
foreign legal counsel in India, preferably on reciprocal basis. If
an Indian lawyer appears in a foreign court, what are the rules
governing his practice? It should be reciprocal,” Pinaki
Mishra, a senior Indian Supreme Court lawyer and Member of
Parliament, told Al Jazeera.
Rules for foreign lawyers
The Indian government had earlier asked the Bar Council of India
to frame rules for foreign lawyers in India.
“We want foreign lawyers to come so as to not deny the Indian
advocates of the same privilege in other countries. If the BCI does
not frame the rules, the Central government would take it upon
itself to stipulate the rules,” Maninder Singh, India’s additional
solicitor general, appearing for the government, had argued in
the court earlier.
Dushyant Dave, a senior Indian Supreme Court
lawyer, representing the London Court of International
Arbitration, had argued for rejecting the plea that foreign lawyers
cannot practise in India.
“Today the world is globalised. India can’t stay away from the
rest of the world. Even a communist country like China has allowed
foreign law firms into the country. India needs to let foreign
lawyers practise here because of our commitment to the WTO that we
would open up legal services in India,” Dave told Al Jazeera.
“India also really need FDI. Those who are going to invest their
precious capital in technology would need it to be safeguarded.
They would be more comfortable with their own lawyers working
here.”