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ShareAhmedabad: Firms when allowed to enter India should follow the Singapore model, i.e.
compulsory partnership between foreign-Indian law firms. No firm should be allowed to practise in India and run single-handedly says Bimal N Patel/
With the law firms from abroad mounting pressure on India to allow practice in the country, a debate has long been on over the pros and cons of the opening up of the Indian legal services sector to foreign lawyers and their law firms. India, under the WTO obligations, is required to open up its legal sector, as this comes under 'services' category. As of now, the practice of law in India is governed by the Advocates Act of 1961 and foreign law firms are not allowed to practise Indian law in our courts. Our laws now allow foreign law firms to open liaison offices in India.
Our law profession has undergone a significant change of late and is emerging as highly competitive and ready to move along with the wave of globalisation in recent times. Therefore, it is not surprising that foreign firms are keen on opening their operations in India as we offer a full range of legal services. In fact, the lawyers with the top global law firms are salivating at the prospects of cracking the multibillion-pound Indian jurisdiction with a mission. They are already into alliance with Indian law firms, such as AZB with Clifford Chance; Jyoti Sagar with DLA Piper; Beachcroft with Khaitan, Jayakar, Sud and Vohra; Allen & Ovary with Trilegal, Linklaters with Talwar Thakore and Associates; and Barucha & partners with Freshfields Bruckhaus Deringer.
Of course, I will call it a mission as in recent times foreigners have started a campaign of sorts, demanding permission to practise law before the Indian courts. They are organising debates and workshops to pressurise the stakeholders as well as the government. And I must admit that we can't ignore these calls for a long time, as we must see interests of Indian lawyers and law firms too in the long run. While believing that legal markets shall be opened but only on the condition of reciprocity, otherwise, it will not be a level playing field.
However, we are in such a strong situation that even if we amend the rule, we will have a win-win situation. We can bargain at our own terms and conditions. And for this, all we need to do is to take it slowly and steadily unlike what we did in with our Bilateral Investment Treaty (BIT) programme.
Back in early 1990s, we were in need and the world knew it. They gave us what we wanted in terms of foreign investment and we opened doors for them on their conditions.
In last three decades, however, situation has changed. With the increase in number of mergers and tie-ups and newly introduced LLPs (Limited Liability Partnership), foreign based lawyers will do anything to get rid of the barriers as far as practising law in India is concerned.
Lifting the 20-partner ceiling of partnership structures will enable Indian law firms to compete effectively with international legal establishments in jurisdictions where LLP for professional services are offered. Firms when allowed to enter India should follow the Singapore model, i.e. compulsory foreign-Indian law firms partnership. No foreign firm should be allowed to enter India and run single-handedly.
But before that India needs a regulatory approach to open legal sector. In fact, we should be ready for their entry but it should be gradual with terms and condition to protect our interests.
As a matter of fact, there should be a regulated approach before we let them practise law in our courts. And of course, it should be in different phases. Once we see their way of functioning, then only we should go to the next level.
As told to DNA
