Foreign law firms only allowed to consult on casual basis, rules SC

NEW DELHI: The Supreme Court held on Tuesday that foreign law firms cannot set up offices in India, but can give advice to their Indian clients on “fly-in and flyout” mode as long as this was on a casual basis and didn’t amount to a full-fledged practice.

A bench of justices AK Goel and UU Lalit allowed foreign lawyers to participate in international commercial arbitrations that take place in India.

The bench said the Bar Council of India (BCI) would determine whether visits by foreign lawyers were casual or part of a practice, the bench said, adding that the BCI, the apex disciplinary body for lawyers, along with the Centre, could frame guidelines for compliance of the direction.

The top court’s judgement came on cross-appeals that were filed against two separate verdicts on the issue. Both Madras and Bombay high courts had declared that foreign lawyers could not practice the profession of law with the former court permitting “fly-in and fly-out”. The BCI had challenged the Madras HC ruling before the top court.

Tweaking the Madras HC order, the top court said: “We hold that the expression “fly-in and fly-out” will only cover a casual visit not amounting to practice.” On whether a foreign lawyer has the right to conduct arbitration in India, the court said if the matter is governed by particular rules of an institution then there is no bar.