Open up the Bar

Foreign competition for lawyers will help Indian litigants

The process of economic liberalisation and opening up to the rest of the world began about 25 years ago but foreign law firms are yet to have the right to open shop in India. This is unsurprising, as the entire judicial system has also seen minimal reform and the country's lawyers, an influential group, are an integral part of the scene where the interests of the litigant come last. But it is significant that the various bodies representing the interests of the Bar, which have over decades been vehemently opposed to letting foreign law firms in, have very recently done an about-turn. Last week two apex lawyers' forums have agreed "in principle" to the legal space being opened up to foreign players provided it is done in phases and on a reciprocal basis.

Currently, agitation by lawyers leading to work stoppages in courts is a regular feature. A nadir of sorts was reached recently in Kolkata where advocates practising at the Calcutta High Court decided to stay away from work for three days because of the heat wave. The disapproval of the chief justice - as also the fact that court rooms at the high court are at least air-conditioned - made no difference. If foreign competition leads to an improvement with Indian lawyers becoming more professional, then that would be a big gain. One of the main reasons for the legal delays in India is the granting of numerous adjournments of hearings, some of which often appear to suit the convenience of lawyers appearing in the relevant cases.

While competition from more professional international practitioners is important and would be a welcome development, two issues need to be kept in mind. First, should opening up in India require reciprocity and should lawyers and law firms from India be required to have the same kind of access to the legal world of those countries that India is giving access to? This may be difficult to ensure. Uniform access across the US, for example, is likely impossible - as, under its federal system, each state has the right to set its own regulations. On the other hand, at the moment Indian law firms can open shop in the main US commercial centres, whereas American law firms cannot do the same in India. Secondly, there is the equally important need to address some of the long-standing demands of Indian law firms like their being allowed to advertise, and also constitute themselves as limited liability partnerships. Perhaps the most important missing part is adequate infrastructure for arbitration and mediation which can be a big source of revenue.