BCI Says Foreign Law Firm Rules Need No CJI or Centre Nod, HC Pushes Back

The Bar Council of India (BCI) informed the Delhi High Court on Tuesday that its 2022 Rules permitting the entry and practice of foreign lawyers and law firms in India do not require prior approval from either the Chief Justice of India (CJI) or the Central government.

 

The submission was made before a Division Bench comprising Chief Justice Devendra Kumar Upadhyaya and Justice Tushar Rao Gedela, while hearing petitions filed by Dentons Link Legal and CMS IndusLaw. The firms have challenged the Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022.

 

Senior Advocate Arvind Nigam, representing one of the petitioners, argued that the BCI had yet to demonstrate that it had obtained the mandatory approvals from the CJI or the Central government before issuing these Rules.

In response, counsel for the BCI said, “We don’t need the approval… Allow me to file a counter and I will justify.”

 

During the hearing, the Bench reiterated its concerns about the BCI Rules, particularly the provisions that enable severe action against law firms on the basis of only a preliminary inquiry. The Court remarked that the Rules are “a mess” and urged the Council to consider amendments.

 

“It’s a mess. Why don’t you [BCI] bring in an amendment? These rules apply across the country,” the Court observed, adding that the Council should focus on properly framing the regulations rather than offering repeated explanations.

 

The BCI responded that a consultation process is currently underway and that suggestions are being reviewed. The Bench, however, pressed the Council to refine the Rules, remarking, “You are the Bar Council after all.”

The Court granted the BCI two weeks to file its affidavit and adjourned the matter to January. Its earlier directive restraining the BCI from taking any final decision in proceedings against the law firms will remain in force. “Don’t take the final decision,” the Bench reiterated.

 

Both IndusLaw and Dentons Link Legal are contesting the validity of the Rules and the show cause notices issued to them in August regarding alleged unauthorised collaborations between Indian and foreign law firms in violation of BCI regulations.

 

The petitioners argue that the BCI lacks the power under the Advocates Act, 1961 to regulate the entry and practice of foreign lawyers and foreign law firms in India. According to IndusLaw, Section 49 of the Act does not authorise the BCI to frame such rules.

 

Dentons Link Legal has additionally invoked Sections 49(1)(c) and (e) of the Advocates Act, contending that any such regulations would require prior approval from the CJI or the Central government. Without these approvals, they argue, the Rules are ultra vires. The firm also pointed out that while the Rules deal extensively with foreign entities, they fail to define what constitutes an “Indian law firm.”

 

Previously, the High Court had also expressed reservations about the Rules, especially the provisions permitting drastic action based solely on preliminary inquiries.

 

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