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Cases/2018 INSC 235
Landmark JudgmentPartly Allowed
2018 INSC 235Supreme Court of India

Bar Council v. A.K. Balaji

Foreign Lawyers Cannot Practice in India - But Can Fly In for Specific Advice

13 March 2018Justice A.K. Sikri, Justice Ashok Bhushan
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TL;DR

The Supreme Court held that foreign lawyers and law firms cannot practice law in India (litigation or non-litigation) unless they fulfill requirements of the Advocates Act, 1961. However, they can visit India on a "fly in and fly out" basis for temporary legal advice on foreign/international law, and can participate in international commercial arbitration proceedings in India.

The Bottom Line

Foreign lawyers cannot set up offices or practice law in India. However, they can come to India temporarily to advise on foreign law or conduct international arbitration. BPO services that don't amount to "practice of law" are permitted.

Case Timeline

The journey from FIR to Supreme Court verdict

judgment
16 Dec 2009

Bombay High Court Judgment

Lawyers Collective v. Bar Council of India - Held foreign lawyers cannot practice in India

judgment
21 Feb 2012

Madras High Court Judgment

A.K. Balaji v. Government of India - Similar ruling on foreign lawyers

judgment
13 Mar 2018

Supreme Court Judgment

Consolidated appeals decided, laying down comprehensive guidelines

The Story

This case consolidated appeals from the Madras High Court and Bombay High Court judgments concerning the legality of foreign law firms operating in India.

A.K. Balaji, an advocate enrolled with the Bar Council of Tamil Nadu, filed a writ petition against 32 foreign law firms from UK, USA, France, and Australia, alleging they were illegally practicing law in India.

The Bar Council of India also raised concerns about foreign firms conducting "fly in and fly out" operations, advising Indian clients on transactions without being enrolled under the Advocates Act.

Additionally, questions arose about whether Business Process Outsourcing (BPO) companies providing legal support services violated the Advocates Act.

The Supreme Court examined the scope of "practice of law" under the Advocates Act and whether foreign lawyers could engage in any legal activities in India.

Legal Issues

Click each question to reveal the Supreme Court's answer

1Question

Whether foreign law firms/lawyers can practice law in India on the litigation side?

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1SC Answer

NO. Only advocates enrolled under the Advocates Act, 1961 can practice before Indian courts and tribunals. Foreign lawyers cannot appear in Indian courts.

Protects Indian legal profession from foreign competition in litigation.

2Question

Whether foreign law firms/lawyers can practice on the non-litigation side in India?

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2SC Answer

NO, as a general rule. Practice of law includes both litigation and non-litigation work. Foreign lawyers cannot set up offices or regularly advise on Indian law.

Extends protection to transactional legal work as well.

3Question

Can foreign lawyers visit India for temporary legal advice?

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3SC Answer

YES. Foreign lawyers can visit India on a "fly in and fly out" basis to advise their clients on foreign law or international legal issues. This casual visit does not amount to "practice" in India.

Allows limited cross-border legal advice in globalized economy.

4Question

Can foreign lawyers participate in international arbitration in India?

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4SC Answer

YES. Foreign lawyers cannot be debarred from conducting arbitration proceedings arising out of international commercial arbitration in India, as this serves international commerce.

Supports India as an arbitration hub.

5Question

Do BPO legal services violate the Advocates Act?

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5SC Answer

NOT NECESSARILY. BPO services like word processing, secretarial support, transcription do not amount to "practice of law." However, if activities involve legal advice or drafting, they would violate the Act.

Allows legal process outsourcing industry to continue operating.

Arguments

The battle of arguments before the Supreme Court

Petitioner

Vihaan Kumar

1

Advocates Act bars non-enrolled persons

Section 29 of the Advocates Act prohibits any person from practicing law unless enrolled as an advocate. Foreign lawyers are not enrolled.

Section 29 Advocates Act, 1961
2

Practice includes non-litigation

The term "practice the profession of law" covers both contentious and non-contentious work.

3

Regulatory protection needed

Indian advocates are regulated by Bar Council. Allowing foreign lawyers would create an unregulated parallel system.

Respondent

State of Haryana

1

Globalization requires flexibility

International transactions often require advice from foreign lawyers on foreign law. Complete ban would hurt Indian commerce.

2

Arbitration is different

International commercial arbitration is party-driven and should allow foreign legal representation.

3

BPO is not legal practice

Support services like transcription and document review are not "practice of law."

Court's Analysis

How the Court reasoned its decision

The Supreme Court adopted a balanced approach, protecting the Indian legal profession from foreign competition while accommodating the realities of globalized commerce. The judgment distinguishes between permanent practice (prohibited) and temporary advice (permitted), and carves out an exception for international arbitration.

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.

Core holding protecting Indian legal profession.

There is no bar for foreign law firms or foreign lawyers to visit India for a temporary period on a "fly in and fly out" basis for giving legal advice to their clients on foreign law or international legal issues.

Creates practical exception for globalized legal services.

Foreign lawyers cannot be debarred from conducting arbitration proceedings in respect of disputes arising out of international commercial arbitration.

Supports India as arbitration venue.

Partly Allowed

The Verdict

Relief Granted

The judgment provides clarity on the scope of activities permissible for foreign lawyers in India.

Directions Issued

  • Foreign lawyers/firms cannot practice law in India (litigation or non-litigation)
  • "Fly in and fly out" temporary visits for foreign law advice permitted
  • International commercial arbitration with foreign lawyers permitted
  • RBI should not grant liaison office permission to foreign law firms under FERA
  • BPO services not amounting to legal practice are permitted

Key Legal Principles Established

1

Only advocates enrolled under the Advocates Act can practice law in India.

2

"Practice of law" includes both litigation and non-litigation work.

3

Foreign lawyers cannot open offices or regularly practice in India.

4

"Fly in and fly out" visits for temporary advice on foreign/international law permitted.

5

Foreign lawyers can participate in international commercial arbitration in India.

6

BPO services not involving legal advice are not "practice of law."

7

RBI should not permit foreign law firms to open liaison offices in India.

Key Takeaways

What different people should know from this case

  • If you need advice on foreign law, foreign lawyers can visit India temporarily to advise you.
  • For Indian law matters, you must consult advocates enrolled in India.
  • If you're involved in international arbitration, foreign lawyers can represent parties.
  • Legal BPO companies providing support services are legal as long as they don't give legal advice.

Watch & Learn

Video explanations in multiple languages

Frequently Asked Questions

No. Foreign law firms cannot set up offices or permanently operate in India. They can only visit temporarily for specific matters involving foreign/international law.
Yes, if it is an international commercial arbitration. Foreign lawyers can participate in and conduct such arbitration proceedings in India.
Yes, legal BPO work like document review, transcription, and support services is permitted. However, the work should not involve giving legal advice or opinions.
A US lawyer can visit India temporarily to advise you on US law. This "fly in and fly out" arrangement is permitted.

DISCLAIMER: This case summary is for educational and informational purposes only. It does not constitute legal advice. For advice on your specific situation, please consult a qualified advocate. JurisOptima is not responsible for any actions taken based on this information.

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