New Delhi: The Bar Council of India (BCI) on Sunday, March 19, said that there have been some "misgivings" surrounding the recent amendments allowing the entry of foreign lawyers and law firms in India, clarifying that their services will be limited only to international laws, which can only to tendered to foreign clients.

The BCI, the statutory body that regulates legal practice and education in India, paved the way for the entry of foreign lawyers and law firms on March 10. Although the rules do not allow foreign lawyers and firms to appear in courts, they will be allowed to set up offices in India and practice transactional and corporate work on a reciprocal basis.

However, there was some backlash, with an association of lawyers accusing the BCI of having “warped priorities”.

In a press release, the body said that the rules enable international lawyers and arbitration practitioners to advise clients in India on foreign and international law only. "Foreign lawyers and law firms shall be allowed to function in non-litigation areas only," it added. The entry of foreign lawyers will be on a "reciprocal basis", which means that only lawyers from those countries which allow the entry of Indian lawyers will be allowed to set up in the country.

"They 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; Foreign lawyers would be allowed to appear for their clients in International Commercial Arbitration," the release added.

According to Bar & Bench, the BCI Rules allowing foreign lawyers "is limited in its scope to advice on foreign law and such advice can be given only to a person, firm, company, corporation, trust, society etc. who/which is having an address or principal office or head office in a foreign country".

The BCI press release said that these rules will encourage multinational corporations and foreign commercial entities to use India as a venue for arbitration proceedings. It said:

"Experience and facts show that MNCs and foreign commercial entities, in case of International Commercial Arbitration, don't prefer India as a venue of Arbitration Proceedings, because they are not allowed to bring lawyers and law firms from their own countries to advise them in International Commercial Arbitration Proceedings, thus, making them to prefer London, Singapore, Paris etc. as the venue for Arbitration Proceedings. BCI's rules will, now, encourage India being preferred as a venue for such International Arbitration Proceedings, thus, helping India become a hub of International Commercial Arbitration."

The BCI said the rules were framed after the Supreme Court said in March 2018 that regulations should be put in place for the entry and management of foreign lawyers and law firms. The press release added that the BCI is "dedicated to defending the interests and well-being" of Indian lawyers.

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