View | India can now become an international arbitration hub

The entry of foreign legal professional has been a subject matter of debate and prognostication for more than a decade. The world today has become a global village, as economies have opened up to allow fair trade and exchange of services. India has always responded well to globalisation and liberalisation. The journey from LPG Policy, 1991, has been a rollercoaster ride with various internal and external challenges. After unswerving efforts, India ranks amongst the top five economies in the world, so much so that Indian rupee is on the verge of replacing US dollar as a trading currency. To  augment the legal profession, the Bar Council of India (BCI), in an emphatic move opened doors to the entry of foreign lawyers and foreign law firms in India. BCI intends to regulate foreign professionals to proliferate and profess the profession on a reciprocity basis in India. 

The BCI Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022 (2022 Rules) have paved the way for Foreign Lawyers and Foreign Law Firms for practising in India. Notably, in 2018, The Supreme Court of India, in 'Bar Council of India v A.K. Balaji and Others', categorically denied foreign lawyers/ lawfirms from practising legal profession (litigation and non-litigation) in India except when non-litigation activities are taken on ‘fly in and fly out’ basis and when arbitration proceedings are conducted in respect of disputes arising out of a contract relating to international commercial arbitration. The pragmatic move from BCI now reverses the former stance with introduction of ‘reciprocity’ and austere regulations. As a natural corollary, Indian lawyers and law firms will get an equal opportunity to render identical legal services in foreign countries. Every coin has two facets and the progress will depend upon how well India flips.

Interestingly, the registration of foreign lawyers/law firms shall be valid for five years and thereafter can be renewed. The BCI has reserved the right of refusal to maintain the balance of practising professionals, ensure reciprocity and protect interests of Indian professionals. Areas of practice specifically include transactional/corporate work such as joint ventures, mergers and acquisitions, intellectual property matters, drafting of contracts and other related matters on reciprocal basis. To protect the interests of Indian lawyers, foreign lawyers will not be allowed to appear before any court, tribunal, statutory and regulatory authorities. Further, restrictions have been placed on engaging in any work pertaining to conveyancing of property, title investigation and other similar works. Hence, foreign lawyers/law firms shall be allowed to practise in non-litigious matters only, subject to stringent conditions laid down. The 2022 Rules also provide that legal advice can be rendered by foreign lawyers without registering with BCI on a ‘fly in fly out’ basis, provided their practice does not exceed 60 days in any period of 12 months.