Lok Sabha Question No. 2425 (UNSTARRED), answered on 2018-12-26
Subject: Foreign Law Firms
Ministry: LAW AND JUSTICE
Asked by: BALASUBRAMANIAM SENGUTTUVAN

## GOVERNMENT OF INDIA MINISTRY OF LAW & JUSTICE DEPARTMENT OF LEGAL AFFAIRS *****

## LOK SABHA

## UNSTARRED QUESTION NO. 2425

## TO BE ANSWERED ON 26.12.2018 Foreign Law Firms

## 2425. SHRI B.SENGUTTUVAN

## Will the Minister of LAW AND JUSTICE be pleased to state:

- (a) whether  the  Government  has  any  proposal  to  allow  foreign  legal firms   to practice in   India in a phased manner beginning with their   entry in non-litigious and international arbitration matters and if so, the reasons therefor ;
- (b) whether  the  Bar  Council  of  India  the  governing  body  regulating legal   practice  in  India  has  accorded  its  permission  to  allow  foreign  law firms to practice in India if so, the reasoning of BCI for such  initiative;
- (c) whether the Government has taken into consideration the adverse impact  of  such  a  move  on  indigenous  law  firms  if  so,  he  steps taken by the  Government in this regard;
- (d) whether  the  government  would  stipulate  a  pre-condition  that  for setting up and legal practice in India the foreign legal firms should employ at least 3/4 th of Indians to do the legal and paralegal work; and
- (e) if so, the status of the proposal at present?

## ANSWER

## MINISTER OF STATE FOR LAW AND JUSTICE

## AND CORPORATE AFFAIRS (SHRI P.P. CHAUDHARY)

(a)  &  (c)  to  (e) -  The  Law  Commission of India submitted its 266 th report  titled 'The Advocate Act,1961 (Regulation of Legal Profession)' on the issue of 'Entry of Foreign Law Firms'  to Government of India in March 2017.

Hon,ble Supreme Court of India in its judgment dated 13.03.2018 in  Civil Appeal Nos.7875-7879 of  2015  titled Bar Council of  India Vs A.K. Balaji and Ors. held that foreign law firms cannot set up offices in India or practice in Indian Courts, but there is no bar for the foreign law firms or foreign lawyers to visit India for  a  temporary  period  for  giving  legal  advice  regarding  foreign  law  on  diverse international legal issues on a 'fly in and fly out' basis if it does not amount to practice. It was further held that if the matter is governed by particular rules of an arbitral  institution  or  if  the  matter  otherwise  falls  under  section  32  or  33  of Arbitration  and  Conciliation  act,  1996  there  is  no  bar  on  foreign  lawyers  to conduct such proceedings in India.  Even in such cases, Code of Conduct, if any, applicable  to  the  legal  profession  in  India  has  to  be  followed.  It  is  for  the  Bar Council  of  India  or  Central  Government  to  make  a  specific  provision  in  this regard, if considered appropriate.

Hon,ble  Supreme  Court's    judgment  dated  13.03.2018  and  266 th report  of Law Commission of India are under consideration of Government of India.

(b) Bar Council of India stated that he issue of framing regulation relating to entry  of  foreign  Law  Firms/Advocates,  if  any,  will  be  considered  by  the  Bar Council  of  India  after  receipt  of  opinion  of  all  the  State  Bar  Councils  after publication of final result of ongoing elections.  The Bar Council of India has said  that  it  can  furnish  its  opinion  only  after  gathering  the  opinion  of  the lawyers all over the country.

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