In a landmark order made today, the Chennai High Court in India has cleared foreign lawyers from flying in and out of India to advise on foreign law, as well as clearing the way for legal process outsourcing (LPO) companies to operate in the country.
The hearing in the case against 31 foreign law firms and an LPO (AK Balaji v The Government of India, Ashurst LLP, White & Case et al) ended on 1 February. The Madras High Court handed down its order today (21 February).
Karthikeyan, counsel for the petitioner AK Balaji, said that the bench ruled that “foreign law firms are not allowed to practise in India, whether in litigation or non-litigation. Neither firms nor individuals are allowed”.
However, he added that “they are allowed to enter into international commercial arbitration, and advise on foreign law not Indian law”.
“LPO [legal process outsourcing companies] are allowed to be set-up, but they have to restrict their work. They cannot give any legal advice,” said Kartikheyan about the ruling.
Chennai-based Dua Associates partner Senthil Kumar, who represented nine of the US firms involved in the litigation, confirmed that the judges said that there is no bar on foreign lawyers to visit India for a “temporary period” on a fly-in-fly-out basis to give legal advice regarding foreign law or their own system of law.
Kumar said the judges also confirmed that foreign lawyers can not be debarred from participating in international commercial arbitration proceedings in India, such as those between an Indian and foreign company.
Foreign lawyers admitted at the American Bar Association (ABA) conference in India last month that the current rules on “fly-in fly-out”, particularly after the Chennai writ petition, were unclear.
The full judgment is expected tomorrow (22 February).
A version of this article first appeared on LegallyIndia.com.
Readers' comments (9)
Two more years...? | 21-Feb-2012 2:01 pm
Although this is good news in one sense, i.e. US/UK lawyers can fly in and out without a problem, this judgement has further consolidated the hard line Indian position that foreign lawyers cannot set up offices on the ground in India.
In this respect it has set back the cause of liberalisation and firms may as well give up any medium term plans for opening in India.
Unsuitable or offensive? Report this comment
Anonymous | 21-Feb-2012 3:18 pm
No one has it as cushy as Indian lawuers. Despite often delivering a shoddy, second-class service at rates the equal of magic circle rates, they are protected from real competition by the Indian government. Lawyers in the "top" firms are raking it in, safe in the knowledge that work will keep coming in. When will India join the real world?
Unsuitable or offensive? Report this comment
Nonnymous | 21-Feb-2012 3:45 pm
yes they are raking it. i can vouch for that. however life is far from cushy..its like working in a sweat shop.
Unsuitable or offensive? Report this comment
Anonymous | 21-Feb-2012 4:08 pm
The right of foreign counsel to appear in Indian arbitration is well established. An English QC appeared in the Sahara v Jet arbitration in Mumbai in April 2007.
Unsuitable or offensive? Report this comment
Anonymous | 21-Feb-2012 5:02 pm
More than fly in and out this decision almost achives what the international law firms would have hoped for, save an amendment of legislation.
Please spend 5 minutes reading the operative part of the decision. A clear verdict that opens the doors for foreign lawyers to not only do M&A type deals, but also arbitrations.
"63. After giving our anxious consideration to the matter, both on facts and on law, we come to the following conclusion :-
(i) Foreign law firms or foreign lawyers cannot practice the profession of law in India either on the litigation or non-litigation side, unless they fulfil the requirement of the Advocates Act, 1961 and the Bar Council of India Rules.
(ii) However, there is no bar either in the Act or the Rules for the foreign law firms or foreign lawyers to visit India for a temporary period on a fly in and fly out basis, for the purpose of giving legal advise to their clients in India regarding foreign law or their own system of law and on diverse international legal issues.
(iii) Moreover, having regard to the aim and object of the International Commercial Arbitration introduced in the Arbitration and Conciliation Act, 1996, foreign lawyers cannot be debarred to come to India and conduct arbitration proceedings in respect of disputes arising out of a contract relating to international commercial arbitration.
...."
Unsuitable or offensive? Report this comment
Anonymous | 21-Feb-2012 5:59 pm
Which is the "real world ".Please don't talk about "shoddy' where Indian law firms are concerned. At least Indian lawyers are" LOYAL TO THEIR CLIENTS" INSIDE THE COURT ROOM. WE HAVE RECENTLY SEEN CASES IN THE WEST WHICH WE CERTAINLY DO NOT WANT DUPLICATED IN INDIA. FULL MARKS TO CHENNAI HIGH COURT.
Unsuitable or offensive? Report this comment
IT voir | 22-Feb-2012 7:23 am
The Information You Shared Is Very Informative.
Latest IT News.
Unsuitable or offensive? Report this comment
Anonymous | 22-Feb-2012 1:11 pm
@anonymous 3:18 - you mean just as shoddy as the typos in your comment? An uneducated stupid comment with racist undertones. You say indian lawyers are "often delivering a shoddy, second-class service at rates the equal of magic circle rates" you are the one that needs to join the real world. Thank goodness Indian lawyers are protected from having to work with people like you. Why shouldn't India act in its own best interests?? Partners at Magic circle firms do all the time!!!!
Unsuitable or offensive? Report this comment
Anonymous | 22-Feb-2012 3:06 pm
Foreign law firms should stay out of India. Why shouldn't the Indians protect their interests? I would give a chance! Why would I want the likes of MC lawyers to milk it when I can keep the money for myself? Its not as if foreign law firms want to do to India to do charity work..its to make money.
Unsuitable or offensive? Report this comment