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Entry of Foreign Law Firms
Context:
The central government has proposed amendments to the Advocates Act, paving the way for foreign law firms and lawyers to operate in India.
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- The Union Ministry of Law and Justice released the draft amendments recently, suggesting that the central government be granted the authority to establish rules governing the entry of foreign legal professionals while empowering the Bar Council of India (BCI) to regulate law firms.
- Previously, the BCI was responsible for formulating rules and regulations regarding the entry of foreign law firms and lawyers.
- Additionally, there was no formal provision for regulating law firms under the Act.
- The proposed amendments are open for public consultation until the end of February.
Key Amendments in the Draft Bill
- Expanding BCI’s Powers: One of the significant proposed changes is an addition to Section 49, which expands the BCI’s regulatory powers to include law firms operating across multiple states.
- Furthermore, Section 7 of the draft amendment bill formally assigns the BCI the responsibility of registering and regulating law firms.
- Authorising Central Government: Another crucial addition is Section 49A, which grants the central government the authority to frame rules governing the entry of foreign law firms and lawyers.
- The draft bill also introduces Section 49B, which clarifies that if any regulation issued by the BCI contradicts the central government’s rules, it will be rendered void.
Increased Government Role in BCI & Restrictions on Lawyer Strikes
- Another notable amendment is the increased role of the central government in the operations of the BCI.
- The draft proposes that three members of the BCI be nominated by the central government—an addition that was previously absent from the Act.
- Additionally, the draft prohibits lawyers from going on strike or boycotting work, either individually or as a group, if it disrupts court proceedings.
- Lawyers who violate this provision will be referred to the BCI’s disciplinary committee.
- However, the bill does allow participation in strikes as long as they do not hinder the administration of justice.
Implications of the Proposed Changes
- The amendments mark a significant shift in India’s legal landscape by potentially opening doors for foreign law firms while reinforcing regulatory oversight.
- The move is expected to bring India in line with global legal market trends.
- However, it remains to be seen how stakeholders, including domestic law firms and legal practitioners, respond to these proposed changes.
