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OPINIONEDITORIAL

Published:June30,201523:37IST|Updated:June30,201523:37ISTJune30,2015

OpeninguplegalservicesThegovernmentsproposaltoopenupthelegalservicessectortoforeignparticipationinalimitedwaymaymarktheendofIndiaspolicyofbarringinternationallawfirmsfromenteringthecountryandofkeepingdomesticfirmsandlawyersinsulatedfromthegrowingglobalmarketfortradeinlegalservices.ThegovernmentsaysithasboththeBarCouncilofIndiaandtheSocietyofIndianLawFirms(SILF)onboard.Theproposedentryofforeignfirmswillbelimitedtoaspectsotherthanlitigationandtointernationalcommercialarbitration.Thepresenceofoverseaslawyersinforumsoflitigationisofcourseruledout.Itisunlikelythatforeignfirmswillbeinterestedinlitigationwork,whichisbyandlargeorganisedandregulatedonnationallines.Further,unlessthereisreciprocitywithregardtorecognitionoflegalqualificationsamongmembercountries,itwillnotbepossibleforvisitinglegalprofessionalstoovercomebasiceligibilitynorms.EversincetheGeneralAgreementonTradeinServiceswasadoptedbymembercountriesoftheWorldTradeOrganisation(WTO),thepotentialforlegalprofessionalstoofferservicesoutsidetheirnationaljurisdictionhasexpandedexponentially.Apartfromdraftingofagreementsandcontractsandrenderinggeneraladvicetooverseasclientsondomesticlegalregimesandframeworks,advocatesandlawfirmsnowplayabigroleinstartingnewbusinesses,mergersandacquisitions,advisingoninvestments,complyingwithregulationsandobtainingclearances.

Atthesametime,therehasbeendisquietinthelegalfraternityaboutthepossibleadverseimplicationsoftheentryofforeignfirmswhich,presumably,arebetterorganisedandhavebetterresourcestocornerthelegalservicesmarket.Somewenttocourtandobtainedfavourableordersbarringtheentryofoverseasplayers.ThecourtshavesofarsaidforeignfirmscannotpractiseinIndiawithoutadheringtotheAdvocatesAct.However,theMadrasHighCourthasallowedoverseasprofessionalstoflyintoofferadvicetoclientsoninternationallegalissues,andparticipateininternationalcommercialarbitration.ThematterisnowintheSupremeCourt,butifthegovernmentcancarrythelegalfraternityalongonitsproposals,Indiawillbeinapositiontobenefitfromopeningupthesector.However,allstakeholdersmustseetoitthatitdoesnothaveanadverseimpacteitheronthecostoflitigationoronthelivelihoodofhundredsofthousandsofpeopleenrolledasadvocatesinthecountry.AkeyconsiderationwouldbewhetherIndiaoughtnottotryandgetashareintheestimated$20billionglobalannualtradeinlegalservices.Thecountrynowhasbetterlawschoolsandavastpooloflegaltalentthereisnoreasonwhyitshouldnotsucceed.

Printableversion|Jul2,201511:16:20AM|http://www.thehindu.com/opinion/editorial/openinguplegalservicestoforeignparticipation/article7371566.ece

TheHindu