The Union Ministry of Law and Justice has proposed to amend the Advocates Act, 1961. The Ministry has empowered the government, through a new Section 49A, to regulate the entry of foreign law firms and lawyers into India.
The Union Government will have rule-making power for carrying out the purposes of the Act including rules with respect to any matter for which the Bar Council of India or a State Bar Council has power to make rules.
The amendments aim to align the legal profession and legal education with global best practices. The government is seeking public feedback until February 28.
This is a shift from the earlier scheme of arrangement under which the Bar Council of India (BCI) was heading the proposal regarding the proposed entry of foreign law firms.
On March 10, 2023, The Rules were issued titled Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022.
“Taking an all-inclusive view, the Bar Council of India resolves to implement these Rules enabling the 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,” said Bar Council of India in the abovementioned rules for allowing Foreign Law Firms to practice law in India on a reciprocity basis.
The same was challenged before the Delhi High Court with the petition alleging that the BCI was non-competent to allow foreign firms and lawyer to practice law in non-litigious matters underthe Advocate Act, 1961. The proposed amendment transfers the power to frame the Rules from the Bar to the Union Government.
The process was at a standstill after the lawsuit, which affected the Rules with had no clarity and future possibilities on opening up of legal market.
