Foreign law firms have finally got a firm no-entry sign for
India. Almost 15 years after the RBI permitted three foreign law firms to set
up shop in India, the Bombay High Court said the decision of the bank was
unjustified under the existing 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 the Chief Justice held that
foreign law firms were barred from practising in the country under the
existing Advocates Act of 1961 and the various bar councils under it.
The HC disposed 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. The Government said that practice by lawyers under the law meant
only litigious practice in Court, but dismissing that argument, the HC held
that, “It would mean that advocates debarred for professional misconduct would
then merrily carry on with practice in litigious matters.’’
“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,’’ the Court held.
But on the issues of reciprocity and other rules to enable
practice by foreign law firms in India, the HC directed the Central Government
which has been dealing with the issue for the last 15 years, to take an
appropriate decision ‘expeditiously’. 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 said that persons practising 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.
(Source : The Times of India, dated 17-12-2009)
