BCI considering action against SILF for "misleading" comments on entry of foreign law firms

The Bar Council of India (BCI) on Sunday accused office bearers of the Society of Indian Law Firms (SILF) of professional misconduct for constantly undermining its authority as regulator of the legal profession..The BCI said that it is seriously considering issuing notices to the SILF representatives responsible for issuing press releases containing “misleading public information” about the entry of foreign law firms. "Issuing sensational or deceptive press releases in the name of protecting law firms, when in reality aimed at safeguarding private commercial interests, constitutes using the profession for personal or sectional gain, which is strictly prohibited. In light of this, the BCI is seriously considering issuing notice to the individuals responsible for these press releases to explain their conduct. If found guilty, appropriate disciplinary action may be taken, including reprimand, suspension, or even removal from the roll of Advocates," the letter states..The SILF and the BCI have been at loggerheads over the recently amended rules allowing the entry of foreign lawyers and law firms into India.SILF has stated that it supports the liberalisation of the Indian legal market, but is mainly concerned with how the changes are being implemented. However, the BCI has questioned SILF’s motives, accusing it of protecting the monopoly interests of a select group of law firms. On June 28, SILF issued a detailed statement questioning whether the BCI wants to bring in foreign law firms to India to demolish Indian entities..Now, the BCI has hit back, stating that the language employed by SILF in its press release amounts to professional misconduct. It stressed that the BCI is a statutory body, constitutionally and legally mandated to regulate the legal profession in India, and that it is not required to be subordinate to the preferences of a “self-serving private institution”. "Public sentiment and media feedback overwhelmingly support the BCI’s reforms as necessary to modernize and globalize the Indian legal profession. The continued resistance of this Society, representative of negligible number of law firms is widely seen as an attempt to protect narrow monopolistic interests rather than the welfare of the legal community at large."It argued that the characterisation by this “pocket society (representing only approximately 2% of Indian Law Firms) of big firms” as architects of modern corporate practice cannot justify perpetual protectionism. “It is a well-known fact that almost all the members of SILF have already established foreign offices and informal tie-ups with foreign entities while denying such opportunities to smaller and emerging Indian firms,” the BCI said. .The BCI also reiterated its stand that a few large firms have systematically monopolised corporate and arbitration work by leveraging informal relationships with foreign clients and networks, which has deprived small and mid-sized firms of valuable cross-border legal opportunities. It stressed that the amendments in the rules for market liberalisation have been carefully crafted in line with Supreme Court judgments and after rigorous legal scrutiny. “They precisely restrict foreign lawyers to non-litigious advisory work, explicitly prohibiting them from practicing Indian law or appearing before Indian courts and tribunals (Rules 8(2)(b) and 8(2)(c)). The claim of these Regulations being ultra vires is therefore unfounded and without merit.”It further highlighted that it will soon take important decisions regarding advertisements, Limited Liability Partnerships (LLPs) and other related issues, to enable Indian law firms to compete effectively with foreign firms. “There is ample scope and potential for this growth, however, driven by their vested interests, a handful of individuals operating under the name of SILF have actively sought to hinder the progress of thousands of law firms and lakhs of lawyers. This has also resulted in substantial financial losses to the government. Therefore, this is a serious matter, which the BCI views with utmost concern.” .The regulator further maintained that it would consider the opinions of law firms across the country before taking a final decision on the rules."The BCI shall carefully consider all letters and opinions received from law firms, following which a large meeting will be convened in Mumbai. Representatives of all law firms will be invited to this meeting, and only after hearing their views in this forum will the BCI take any final decision on the matter.".Cyril Shroff to chair committee set up by BCI to examine concerns about rules on entry of foreign lawyers to India.[Read BCI Press Release].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.