India to Open Legal Market to UK Lawyers: BCI to Announce Amended Rules by End of July

India is set to open its legal market to lawyers and law firms from the United Kingdom (UK) with the Bar Council of India (BCI) expected to notify and implement amended rules by the end of July. This significant development was announced during a meeting at the Law Society’s Hall in London, attended by representatives from the Law Society and the Bar Council of England and Wales.

This move follows the BCI’s earlier efforts to liberalize the Indian legal market, which began in March last year when the BCI announced the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022. However, these rules were not put into effect due to objections raised by the Society of Indian Law Firms (SILF) and a need for further clarity from the Law Society and the Bar Council of England and Wales. Additionally, a petition challenging the rules was filed in the Delhi High Court.

The recent meeting in London addressed several issues related to the amended regulations. The session began with opening remarks from Law Society President Nick Emmerson, who emphasized the importance of India as a jurisdiction and expressed a desire to work closely with the BCI on implementing the new rules. BCI Chairman Manan Kumar Mishra explained that while the BCI is eager to open the Indian market to UK lawyers and firms, there are concerns about international law firms headquartered in London entering India. For now, the BCI intends to limit market access to British lawyers and firms, with others allowed to operate in India only on a ‘fly-in, fly-out’ basis.

Several key issues were discussed during the meeting:

1. Rule 8(2)(v): This rule states that Indian advocates working with foreign law firms can only handle non-litigious matters and advise on laws of countries other than India. The Law Society argued for fewer restrictions on Indian lawyers working for foreign firms, emphasizing opportunities for Indian lawyers. BCI agreed to review this rule, with a focus on ensuring reciprocal treatment for Indian lawyers in the UK.
2. Definition of “foreign law”: The current rules define foreign law as the law effective in the country of primary qualification. The Law Society suggested that UK lawyers should be able to offer English and international legal work in partnership with Indian lawyers handling Indian law. BCI agreed to consider this suggestion.
3. Definition of “foreign client”: The existing definition restricts foreign law firms to advising clients who are foreign citizens or businesses with a registered office abroad. The Law Society pointed out that advising such clients could be done from outside India, making it unnecessary to have offices in India for this purpose. BCI agreed to amend the definition to include Indian clients.
4. Fly-in, fly-out period: Currently set at 60 days, both the Law Society and the Bar Council of England and Wales requested an extension to 90 days. BCI agreed to review this in accordance with the Supreme Court’s judgment in AK Balaji.
5. Registration costs: The UK representatives raised concerns about the high costs of registering individual lawyers. BCI agreed to review these costs.
6. Disciplinary jurisdiction: It was suggested that the BCI should have disciplinary jurisdiction over foreign lawyers practicing in India. BCI noted this concern and agreed to consider it further.
7. International commercial arbitration: BCI agreed to develop a Code of Conduct for foreign lawyers involved in international disputes, as per the Supreme Court’s judgment in AK Balaji.

The meeting concluded on a positive note with Emmerson and Mishra both expressing optimism about the future cooperation between the UK and Indian legal sectors. Emmerson highlighted the importance of strong legal sector ties amid ongoing negotiations for a UK-India free trade agreement and the economic growth of India. He emphasized that the Law Society of England and Wales has extensive experience in the legal services sector and regulating an open jurisdiction, and is eager to share this expertise with the BCI.

Mishra acknowledged the fruitful discussions and reiterated the BCI’s commitment to implementing the new regulations by the end of July. He expressed hope that the issues discussed would be resolved once back in Delhi and emphasized the importance of cooperation between the UK and Indian legal communities. Mishra also noted that the BCI respects the sentiment of the Indian government regarding the free trade agreement and will make necessary amendments to the rules to suit both UK and Indian law firms and lawyers.

The Chair of the Bar Council of England and Wales, Sam Townend KC, also expressed satisfaction with the discussions. He recognized the unique position of the self-employed Bar, which is primarily interested in fly-in, fly-out arrangements for single arbitrations rather than establishing offices in India. Townend looked forward to further discussions during his visit to India in October.

In summary, the BCI’s decision to open the Indian legal market to UK lawyers and firms marks a significant step towards liberalizing the sector. The discussions in London addressed various issues and paved the way for implementing the new regulations, which are expected to foster closer ties and cooperation between the legal communities of the UK and India.