Recently, the Bar Council of India (BCI) officially notified rules allowing foreign law firms and lawyers to practice in India in limited areas.

Key Provisions of the New Rules

• Non-Litigious Practice Only: Foreign law firms and lawyers are permitted to operate only in non-litigious matters, such as advisory work and international arbitration.
• Restricted use of Foreign and International Law: They are allowed to advise only on foreign and international law, not on Indian legal matters.
• Reciprocal Access Required: Permission is granted only on a reciprocal basis, implying that Indian lawyers must receive equivalent access in the foreign country.
• Dual Registration Option: Indian lawyers and firms can register for foreign law practice without surrendering their right to practice Indian law.

History of Foreign Practitioner Entry in India

• Law Commission’s Proposal :  Working Paper by the Law Commission in the year 2000  recommended amendments to the Advocates Act, 1961, for foreign legal consultancy.
• Mass Opposition: In February 2000, over 40,000 lawyers protested against proposed legal reforms allowing foreign practitioners, citing threats to domestic legal sovereignty.
• Judicial Position: The Supreme Court ruled in 2018 that foreign lawyers and law firms could not practice law in India, including both litigation and non-litigation domains.
• Policy Shift : BCI issued a notification in March 2023 allowing foreign lawyers to work on non-litigious matters.
  • However, this was challenged in the Delhi High Court and remains pending.

Criticism of the New Rules

• Conflict with Existing Law: Legal experts argue the BCI’s move contradicts the Supreme Court’s 2018 ruling and does not align with the Advocates Act, 1961.
• Demand for Amendment: Experts suggest the Parliament should amend the Advocates Act instead of relying on administrative notifications.
• Ambiguity in Rule: The new rules do not clarify if foreign lawyers can appear in international arbitration involving Indian law, leading to legal uncertainties.
• Non-Reciprocity: Bar Council leaders argue that true reciprocity does not exist, as Indian lawyers face multiple restrictions abroad despite India’s liberal approach.

Way Forward

• Amendment to the Act: Experts recommend a clear legislative amendment to the Advocates Act to ensure legal consistency and remove judicial ambiguity.
• Clarify Scope: The BCI must clearly define the operational boundaries for foreign lawyers, especially in arbitration and consultancy work.
• Secure Genuine Reciprocity: Before expanding access, India should negotiate reciprocal recognition agreements ensuring Indian lawyers receive equal rights abroad.
• Global Integration and Legal Sovereignty: Regulatory reforms should aim to promote international legal collaboration while protecting the integrity and autonomy of India’s legal system.