In a major decision affecting the legal profession in India, a two-judge bench of the Supreme Court ruled yesterday that foreign law firms and lawyers will not be allowed to practice in the country as they are not registered with the Bar Council.
The judgement, delivered by Justices Adarsh Kumar Goel and RF Nariman, says foreign law firms cannot carry out any litigation or non-litigation work on permanent basis and shall be prohibited from establishing offices in India for such purposes. It said that even if they do work here, they will be subject to rules of the Bar Council of India.
The court found a middle ground on the question of entry of foreign lawyers in India by referring to two old judgements of the Bombay and Madras High Courts on this issue to rule that they can be allowed to carry out only limited work like providing advisory services to clients, but only by flying in and out without opening permanent offices here.
Even if they carry out permitted work in India, the court said they will be bound by the Bar Council’s rules of conduct for lawyers. The apex governing body for advocates in India was told that it is allowed to draft rules for governing conduct and general business of foreign law firms working in India.
This entire issue stems from a notification issued by the Ministry of Commerce and Industry in January allowing foreign law firms to set up offices and advise clients in Special Economic Zones. Foreign lawyers had argued for greater autonomy in their functioning in India, while the Bar Council had strongly opposed their entry here altogether.