Foreign Law Firms Entry: “How Do You Get Over Supreme Court Judgment In AK Balaji Case,” Delhi High Court Asks BCI

Jahanvi Agarwal

On 9th February 2024, the Delhi High Court took a significant step by issuing notices to the Bar Council of India (BCI), the Ministry of Law and Justice, and the Ministry of Home Affairs, regarding a petition challenging the BCI’s decision to allow foreign law firms to operate in India. A division bench, comprising Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, granted the BCI and the Central government four weeks to file their counter-affidavits.

The Court raised a pertinent question during the hearing, questioning how the BCI intended to circumvent the 2018 apex court judgment in the Bar Council of India v. A.K. Balaji & Others, (2018) 3 MLJ 470, which clearly stated that foreign law firms with foreign lawyers cannot establish offices in India.

The plea, filed by a group of advocates including Narendra Sharma, Arvind Kumar Bajpai, and others, contested the BCI’s notification issued on March 10, 2023, permitting foreign lawyers to register and practice law in non-litigious matters. According to the petitioners, this notification exceeds the BCI’s authority under the Advocates Act of 1961.

Senior Advocate Rakesh Tiku, representing the petitioners, emphasized that the BCI cannot overstep the boundaries set by the Advocates Act, asserting that foreign firms have been permitted to open law offices despite the Act’s prohibition. He argued that only Indian citizens are eligible to enroll as lawyers in India and questioned whether non-citizens could be allowed to practice law under the Act’s regulation.

Advocate Preet Pal Singh, representing the BCI, defended the notification, stating that it clearly outlines the permissible activities for foreign law firms in India. However, the Court persisted in questioning how the BCI intended to reconcile its decision with the apex court’s judgment in the AK Balaji case.

The Court directed the BCI to submit its response and scheduled further consideration of the case for April 24. This development underscores the ongoing debate surrounding the entry of foreign law firms into the Indian legal landscape and its implications for the legal profession in the country.

Case Name: Narendra Sharma and Ors v. Bar Council of India and Ors.

Dairy Number: 1556/2024

Bench: Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora

Click here to access the order.