Joining the intense debate over the opening of legal services on which the country’s legal fraternity is divided, Chief Justice of India KG Balakrishnan has said foreign law firms may be allowed to enter India on a reciprocal basis.“They (foreign-based law firms) could only be allowed entry here if they do the same for us. It has to be on the basis of reciprocity,” Balakrishnan told PTI in an interview. He said the debate over allowing foreign-based law firms was going on for a long time but “until and unless other countries open the field for our lawyers, they cannot be given entry”. According to Balakrishnan, unilateral permission to allow foreign lawyers practice in India would not be a wise step. “How could you allow them when you are not permitted to work in other country?” the CJI questioned. Speaking on the issue, Union Law Minister HR Bhardwaj last week had said Indian lawyers would gain with the opening of the legal sector to foreign companies.
“Initiatives taken by the law ministry (with regard to opening of the legal sector to foreign firms) would cause no harm to the Indian bar,” Bhardwaj had said. The government is facing enormous pressure from World Trade Organization (WTO) and other organisations to open the legal sector in the country for foreign-based law firms.
The commerce and industry ministry, which is the nodal ministry to deal with the WTO had floated a paper in May, 2006, and sought opinion from the legal fraternity and also sought the view of the law ministry. The commerce ministry is still awaiting the response of the law ministry on this issue as there is a division among the legal fraternity on opening of the legal services.
Although many large Indian law firms having international clients and are pitching for the entry of foreign firms, the litigating lawyers and advocates are opposing the move.
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