BCI To Amend Rules To Further Open Up The Market For U.K Firms

 


By the end of July, the Bar Council of India (BCI) is expected to announce and implement revised regulations governing the admission of foreign attorneys and law firms into India. Initially, this access will be limited to attorneys and law firms based in the United Kingdom (UK).

Historical Context

The move towards liberalizing the Indian legal market gained momentum in March of last year with the notification of the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022. This was followed by a press release from the BCI on March 19, 2023, which stated that foreign law firms would only be allowed to open offices in India to provide legal advice to foreign clients.

Concerns and Delays

Several concerns were raised by the Society of Indian Law Firms (SILF), the Law Society, and the Bar Council of England and Wales, which led to the delay in implementing the 2023 Rules. Additionally, a legal challenge to the Rules was brought in the Delhi High Court.

Recent Developments

During a recent meeting at the Law Society’s Hall in London with the Bar Council of England and Wales and the Law Society, several key topics regarding the revised regulations were discussed:

Rule 8(2)(v)

This rule stipulates that an advocate enrolled with a State Bar Council in India, working as a partner or associate in a foreign law firm, can only handle non-litigious cases and provide legal advice on matters outside India. The Law Society requested fewer restrictions on Indian attorneys practicing abroad to ensure more opportunities. The BCI agreed to review this rule and emphasized the need for reciprocal treatment for Indian attorneys in the UK.

Definition of "Foreign Law"

Currently, "foreign law" is defined as the law in force in the primary qualifying country. The Law Society proposed allowing their attorneys to provide both English and foreign legal services in collaboration with Indian attorneys on Indian cases. The BCI agreed to explore this suggestion.

Definition of "Foreign Client"

A "foreign client" is currently defined as any individual or organization based outside India but having a presence in India. The Law Society argued that this definition would render opening offices in India unnecessary for advising foreign clients. The BCI consented to revise the criteria to include Indian clients.

Fly-In, Fly-Out Provisions

The Law Society and the Bar Council of England and Wales requested extending the fly-in, fly-out provision from sixty to ninety days. The BCI committed to reviewing and making necessary adjustments as per the Supreme Court's ruling in AK Balaji.

Registration Costs

The high cost of registering individual attorneys was also discussed, and the BCI agreed to examine this issue.

Disciplinary Jurisdiction

The stakeholders suggested that the BCI should have disciplinary authority over foreign attorneys practicing in India.

International Commercial Arbitration

The BCI agreed to create a code of conduct to regulate foreign attorneys in international disputes, aligning with the Supreme Court's ruling in AK Balaji.



As the meeting concluded, representatives from both the BCI and the UK expressed optimism about strengthening ties and collaboration between their legal systems. BCI Chairman Manan Kumar Mishra emphasized the productive nature of the discussions and expressed confidence that the issues would be resolved soon, with the new regulations likely going into effect by the end of July.

Statements from Leaders

  • Sam Townend KC, Chair of the Bar Council of England and Wales: Highlighted the fruitful discussions and looked forward to further engagement.
  • Manan Kumar Mishra, Chairman of the BCI: Affirmed the commitment to resolving issues and implementing the new regulations by the end of July, while respecting the free trade agreement and the interests of both Indian and UK legal professionals.

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