Foreign Law Firms Got a No-Entry Sign for India – Finally, foreign law firms have got a no-entry sign for India. Almost after 15 years, since RBI had allowed three foreign law firms to establish shop in India, the Bombay High court on Wednesday announced the decision of the bank was unjustified under the present laws that governed advocates and their practice in the country.
Putting a full stop on the `can-they-can’t-they’ arguments over entry of foreign law firms into India even for practice on only non-litigious matters, the HC bench headed by Chief Justice Mr. Swatanter Kumar held that foreign law firms were barred from practicing in the country under the existing Advocate Act of 1961 and the various bar councils under it.
The high court casted aside of a public interest litigation filed by lawyers collective way back in 1995 against the permission given by the RBI to the three foreign law firms. In 1995, the HC had stayed the bank’s decision, but then the matter lay in cold storage for years before a lengthy and heated hearing on the issue took place in court for and against the proposition.
Dismissing the argument, HC held the government saying that the practice by lawyers under the law meant only litigious practice in court and also stated, “It would mean that advocates debarred for professional misconduct would then merrily carry on with practice in litigious matters.” In addition, the court held, “When efforts are being made to see that the legal profession stands tall in the fast-changing world, it would be improper to hold that the 1961 Advocates Act and the bar councils have limited role to play in the field relating to practice of law.”
But on the issues of reciprocity and other rules to alter practice done by foreign law firms in India, the high court conducted the central government that has been dealing with the issue for the last 15 years, to take a relevant decision efficiently. The Centre was all for paving the way for foreign law firms, but the Bar Council of India (BCI) was against letting them in.
Till the government decides to come out with a new law or amend the existing laws, the HC stated that persons practicing the legal profession whether in litigation or non-litigation work will be governed by the Advocates Act, the Bar Council of India and the various state bar councils as well as courts to take action for professional misconduct.
Non-litigious practice of law in India is not unregulated said the HC, quashing an argument made by the pro-foreign law firms’ lobby that the law in India only covered practice in court.
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