Lok Sabha Question No. 4896 (UNSTARRED), answered on 2023-03-31
Subject: Permission to Foreign Legal Firms for Practice
Ministry: LAW AND JUSTICE
Asked by: Raja Amareshwara Naik, Rajveer (Raju Bhaiya) Singh, Vinod Kumar Sonkar, Bhola Singh, Sukanta Majumdar

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.4896 TO BE ANSWERED ON FRIDAY, THE 31 st  MARCH, 2023

## Permission to Foreign Legal Firms for Practice

## 4896. SHRI RAJA AMARESHWARA NAIK:

SHRI RAJVEER SINGH (RAJU BHAIYA):

SHRI VINOD KUMAR SONKAR:

SHRI BHOLA SINGH:

DR. SUKANTA MAJUMDAR:

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

- (a) whether the Bar Council of India which is a regulating body of legal practice in  the  country,  has  accorded  its  permission  to  allow  foreign  law  firms  to practice in the country;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government has stipulated any pre-condition for legal practice including that certain percentage of Indians are required to be employed by the foreign legal firms to do the legal and paralegal work in India, if so, the details thereof;
- (d) whether the Government has taken into consideration the possible adverse impact  of  the  above  decision  on  indigenous  law  firms  and  if  so,  the corrective steps taken/being taken by the Government in this regard;
- (e) whether the Government has allowed Robot Lawyer for legal practice in the country and if so, the details thereof and if not, the reasons therefor; and
- (f) the  other  steps  being  taken  by  the  Government  for  the  development  and welfare of legal profession in the country?

## ANSWER MINISTER OF LAW & JUSTICE (SHRI KIREN RIJIJU)

- (a) and  (b):  The  Bar  Council  of  India  (BCI) vide notification  dated  10 th March, 2023 has  published  in  Gazette  of  India  the Bar Council of India Rules for registration  and  regulation  of  foreign  lawyers  or  foreign  law  firms  in India .  The  Rules  provide  for  foreign  lawyers  and  Foreign  Law  Firms  to

practice foreign law and diverse international law and international arbitration matters in India on the principle of reciprocity in a well-defined, regulated and controlled manner.

Chapter  IV  of  the  Rules  lays  down  nature  and  extent  of  law  practice  by  a foreign  lawyer  /law  firm.  Rule  8  provides  the  nature  and  extent  to  which  a foreign lawyer is authorised to practice law in India. The BCI has informed that the activities of foreign lawyers/foreign law firms in India as per the rules may be summarised as under:

1. Foreign Lawyers and Law firms shall be allowed to advice their clients about foreign laws and international laws only.
2.  They  would  render  advisory  work  about  such  Laws  for  their  foreign clients only.
3.  Foreign Lawyers and foreign law firms shall be allowed to function in non-litigious areas only.
4. Foreign lawyers and foreign law firms shall not be allowed to appear in any Court, Tribunal, Board, before any statutory or regulatory authority or any forum legally entitled to take evidence on Oath and/or having trappings of a Court.
5. Entry of Foreign Lawyers would be on reciprocal basis only i.e. Lawyers of only those countries would be permitted in India where Indian Lawyers are also permitted to practice.
6.  Foreign  Lawyers  would  be  allowed  to  appear  for  their  clients  in International Commercial Arbitration.

As per the objects and reasons of the Rules, growth in international legal work, globalization  of  legal  practices  and  crisscrossing  of  legal  professionals from one country to other has called for presence of an open, responsive and receptive legal dispensation mechanism in India. Also, time has come to take a call  on  the  issue.  Bar  Council  of  India  is  of  the  view  that  opening  up  of  law practice  in  India  to  foreign  lawyers  in  the  field  of  practice  of  foreign  law; diverse  international  legal  issues  in  no  litigious  matters  and  in  international arbitration cases would go a long way in helping legal profession/domain grow in  India  to  the  benefit  of  lawyers  in  India  too.  The  rules  will  also  help  to address the concerns expressed about flow of Foreign Direct Investment in the country and making India a hub of International Commercial Arbitration.

- (c) The  BCI  has  informed  that  no  preconditions  have  been  stipulated  by  it regarding legal practice or w.r.t. any percentage of Indians to be employed by the foreign legal firms to do the legal and para legal work in India.
- (d) The BCI has informed that, it is of the firm view, firstly, that entry of foreign lawyers and foreign law firm is not going to adversely impact advocates of the country.On the contrary, the Bar Council of India firmly believes that entry of foreign  lawyers  and  law  firms  will  benefit  scores  of  young  advocates  and budding Indian Law Firms. And in the long run, it will be proved beneficial to the Indian Lawyers, Law Firms and for the entire country.
- (e) The  BCI  has  informed  that  it  is  in  favour  of  use  of  modern  technological development to assist and aid general public accessing justice and provide ease of  professional  activities  by  lawyers.   However,  except  that  AI  (artificial intelligence) is proposed to be used in a limited sphere by the Courts, there is no proposal a Robot Lawyer for legal practice in the country. Bar Council of India feels that majority of about 2.5 million lawyers practicing in India Courts are  operating  in  Distt.,  Tehsil  or  Taluka  Courts,  many  of  them  in  remote  or interior areas on various States. The concept of Robot Lawyers will not be in the interest of Indian Lawyers.
- (f) As per the provisions of section 7(1)(h) of the Advocates Act, 1961, the Bar Council of India (BCI) is entrusted with the function inter-alia of  promoting and laying down the standards of legal education in the country. The BCI has framed Bar Council of India Rules Part IVRules of Legal Education  -  2008under  sections  7(1)(h) and  (i), 24(1)(c)(iii) and  (iiia), 49(1)(af),(ag)  and  (d)  of  the  Advocates  Act  ,1961  with  the  objective  to maintain  and  raise  the  standard  of  legal  education  of  the  University  and Colleges imparting legal education.

The Rules prescribe the minimum requirement vis-à-vis infrastructure, minimum  library  requirement,  requirement  of  core  faculties  in  adequate number  and  qualification  as  books,  library  and  teachers  are  very  essence  of legal education for getting recognition and approval of the BCI. Clinical legal education  such  as  drafting,  pleading  and  conveyance,  professional  ethics  and professional  accounting  system,  alternate  dispute  resolution,  moot  courts  has been introduced as a compulsory clinical course for giving students a practical aspects of preparation, appearance and arguing in the courts like atmosphere. On  a  call  from  Hon'ble  Prime  Minister  at  the  Joint  Conference  of  Chief Ministers and Chief Justices of High Courts, held on 30 th April, 2022, the BCI

has also agreed to introduce technology related subjects such as block chains, electronic  discovery,  cyber-security,  robotics,  Artificial  Intelligence  and  bioethics  in  the  course  curriculum  of  LL.B.  as  well  as  LL.M  degree  in  Law Universities of India.

Due  to  the  introduction  of  this  Rules  and  Continuous  persistence  of enforcement  of  the  Rules,  students  graduating  in  law  are  better  equipped  to deal with problems of diverse magnitude and a student of law and an advocate is  today  trained  in  professional  skills  to  meet  the  challenges  of  globalization and universalization of law.