[Exclusive] India to open up legal market to UK lawyers and firms; BCI to notify amended rules by end of July

The Bar Council of India (BCI) will most likely notify and implement amended regulations to govern the entry of foreign lawyers and foreign law firms by the end of July..For the time being, the Indian legal market will be opened only to lawyers and law firms in the United Kingdom (UK).BCI made this announcement at a meeting held with the Law Society and the Bar Council of England and Wales at the Law Society's Hall in London..The long-awaited move to liberalise the Indian legal market gained impetus in March last year, when the BCI notified the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022.This was followed by a press release dated March 19, 2023, issued by the BCI stating that foreign law firms will be allowed to set up offices in India only to advise their foreign clients about foreign laws.However, the Rules were not implemented because the Society of Indian Law Firms (SILF) raised certain objections, and the Law Society and Bar Council of England and Wales also wanted more clarity on them. A petition was also filed in the Delhi High Court challenging the Rules..In a meeting held on Thursday at the Law Society, several issues relating to the amended regulations were discussed..The meeting started with opening remarks by Law Society President Nick Emmerson, who said,"In light of the regulations passed last year, we are keen to understand how we can work more closely with you (BCI) on the rules and their implementation. India is an immensely important jurisdiction for us, and it is a pleasure to host the Bar Council of India to further reaffirm our shared interests.".BCI Chairman Manan Kumar Mishra explained why the 2023 Rules are yet to be implemented. He said that the BCI has come with an open heart to open the Indian legal market to the UK. However, one big concern for the BCI was international law firms headquartered in London coming into India. Right now, BCI wants to open up the Indian market only for British lawyers and firms and not for firms from other jurisdictions, which can only operate in India on a 'fly-in, fly-out' basis..The following issues were discussed during the meeting:.1. The first issue discussed was Rule 8(2)(v), which states that an advocate enrolled with any State Bar Council in India and who is a partner or associate in any foreign law firm can only take up non-litigious matters and advise on laws of countries other than India."Such Lawyer shall have no advantage/right of his being an Advocate enrolled in India," the Rules state.The Law Society called for fewer or no restrictions on Indian lawyers who work for foreign firms. Mickael Laurans, the Law Society's Head of International, said it was a question of opportunities for Indian lawyers. "It is also a question for you (BCI) to decide what you want for Indian lawyers in terms of opportunities to be able to join international law firms and what work they can do as part of that. There may be particular sensitivities around litigation but our preference would be fewer restrictions," he said.Emmerson added said that UK lawyers are not at all interested in litigation in India.BCI agreed to investigate this particular Rule and make certain amendments. However, it also emphasized that Indian lawyers in the UK should be treated with the same reciprocity..2. The second issue debated during the meeting was the definition of "foreign law". According to the current Rules, foreign law means a law that is or was effective in the country of primary qualification.Laurans suggested they would like their lawyers to offer English and international work - if possible, in partnership with Indian lawyers who will be doing Indian work.The BCI suggested that they would look into this technicality..3. The next issue was the definition of "foreign client," defined as an individual/s who is/are citizen/s of a foreign nation or a firm/corporation/business entity having its registered office/head office in a foreign country with a branch/regional office or manufacturing unit in India.The Law Society suggested that opening offices in India to advise foreign clients would be pointless since that can be done from foreign jurisdictions.BCI agreed to this suggestion and agreed to amend the definition to include Indian clients..4. The fourth issue raised was the time period for fly-in and fly-out. Right now, it is 60 days, but both the Law Society and Bar Council of England and Wales requested that it be made 90 days.BCI has agreed to look into this and make necessary changes as per the Supreme Court's judgment in AK Balaji.5. The UK counterpart also raised the exorbitant cost of registering individual lawyers, which BCI agreed to review.6. The next issue discussed was disciplinary jurisdiction. BCI mentioned that the stakeholders have raised an issue that the disciplinary jurisdiction should be with BCI.7. Regarding international commercial arbitration, BCI agreed to develop a Code of Conduct applicable to the legal profession as per the Supreme Court's judgment in AK Balaji, that will govern foreign lawyers in international disputes..BCI Rules on entry of foreign law firms vague; need to put our house in order: Delhi lawyers .As the meeting drew to a close, Emmerson said,"Everyone here today shares an ambition to strengthen the bonds of friendship between English, Welsh and Indian lawyers and to further the cooperation between our two jurisdictions. As both our countries go through historic general elections this year, and the UK-India free trade agreement negotiations continue, our close ties are as important now as they’ve ever been, adding weight to the importance of today’s meetings and tonight’s reception.In the last couple of years, India has seen rapid growth, becoming the world’s fifth largest economy and aiming to be the third largest by 2028. An important part of continuing this trend is ensuring a strong legal sector. Here at the Law Society of England and Wales, we have extensive experience in the legal services sector and regulating an open jurisdiction.We would like to continue our excellent engagement with the Bar Council of India and stand ready to share our learnings and expertise.".BCI Chairman Mishra, while delivering his concluding remarks, said that the meeting was very fruitful."We hope all these issues are resolved once we are back in Delhi," he said while announcing that the fresh regulations framed by BCI will most probably be implemented by the end of July. He added,"We respect the sentiment of our government as per the free trade agreement (FTA) and will make the necessary amendments in our Rules that will suit you (UK) and suit our law firms and lawyers. With your cooperation, the Regulations will be implemented by the end of July.".Chair of the Bar Council of England and Wales Sam Townend KC said,"We had a really productive discussion with the Bar Council of India. There seems to be a good recognition of the different position of the self-employed Bar, which is interested in Fly In Fly Out for single arbitrations and not establishment of offices in India. I look forward to my further visit in October this year."