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OPINIONEDITORIAL

Published:June30,201523:37IST|Updated:June30,201523:37IST
June30,2015

Openinguplegalservices
ThegovernmentsproposaltoopenupthelegalservicessectortoforeignparticipationinalimitedwaymaymarktheendofIndiaspolicyof
barringinternationallawfirmsfromenteringthecountryandofkeepingdomesticfirmsandlawyersinsulatedfromthegrowingglobal
marketfortradeinlegalservices.ThegovernmentsaysithasboththeBarCouncilofIndiaandtheSocietyofIndianLawFirms(SILF)on
board.Theproposedentryofforeignfirmswillbelimitedtoaspectsotherthanlitigationandtointernationalcommercialarbitration.The
presenceofoverseaslawyersinforumsoflitigationisofcourseruledout.Itisunlikelythatforeignfirmswillbeinterestedinlitigationwork,
whichisbyandlargeorganisedandregulatedonnationallines.Further,unlessthereisreciprocitywithregardtorecognitionoflegal
qualificationsamongmembercountries,itwillnotbepossibleforvisitinglegalprofessionalstoovercomebasiceligibilitynorms.Eversince
theGeneralAgreementonTradeinServiceswasadoptedbymembercountriesoftheWorldTradeOrganisation(WTO),thepotentialfor
legalprofessionalstoofferservicesoutsidetheirnationaljurisdictionhasexpandedexponentially.Apartfromdraftingofagreementsand
contractsandrenderinggeneraladvicetooverseasclientsondomesticlegalregimesandframeworks,advocatesandlawfirmsnowplayabig
roleinstartingnewbusinesses,mergersandacquisitions,advisingoninvestments,complyingwithregulationsandobtainingclearances.
Atthesametime,therehasbeendisquietinthelegalfraternityaboutthepossibleadverseimplicationsoftheentryofforeignfirmswhich,
presumably,arebetterorganisedandhavebetterresourcestocornerthelegalservicesmarket.Somewenttocourtandobtainedfavourable
ordersbarringtheentryofoverseasplayers.ThecourtshavesofarsaidforeignfirmscannotpractiseinIndiawithoutadheringtothe
AdvocatesAct.However,theMadrasHighCourthasallowedoverseasprofessionalstoflyintoofferadvicetoclientsoninternationallegal
issues,andparticipateininternationalcommercialarbitration.ThematterisnowintheSupremeCourt,butifthegovernmentcancarrythe
legalfraternityalongonitsproposals,Indiawillbeinapositiontobenefitfromopeningupthesector.However,allstakeholdersmustseeto
itthatitdoesnothaveanadverseimpacteitheronthecostoflitigationoronthelivelihoodofhundredsofthousandsofpeopleenrolledas
advocatesinthecountry.AkeyconsiderationwouldbewhetherIndiaoughtnottotryandgetashareintheestimated$20billionglobal
annualtradeinlegalservices.Thecountrynowhasbetterlawschoolsandavastpooloflegaltalentthereisnoreasonwhyitshouldnot
succeed.
Printableversion|Jul2,201511:16:20AM|http://www.thehindu.com/opinion/editorial/openinguplegalservicestoforeign
participation/article7371566.ece
TheHindu