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Sales Tax Practioners' Association of Maharashtra

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Sales Tax Review

January  2008

All are equals, but some are more than equals

"Red carpet welcome to ‘FOREIGN LAW FIRMS’ can lead to chaos and anarchy"

Introduction

An old Adage says, ‘The King Can Do No Wrong’. Entry of Indian lawyers outside India looks difficult but the converse is not true.

BPO, FPO, KPO, LPO, PPO, RPO… this growing list of acronyms has led to the stereo typical perception that businesses eager to ride the outsourcing wave are constantly being set up to process just about everything under the sun in this supposedly flat world. The application and integration of state of the art technology gives lawyers an edge over their counterparts in conventional legal practice. Traditional Geographic boundaries of client service are now passé affording lawyers the enviable opportunity to demonstrate their professional skills in a global context as never before. Direct interaction with overseas clients on their laws lends a new dimension to lawyers understanding of legal practice in other countries not to mention an enhanced multicultural sensitivity and development of their communication skills written and oral.

A systematic process driven approach to performing legal services often requiring lawyers to work in teams with their peers, sharpens, their people and time management skills.

Ensure Inclusive Growth: The concept of Equitable distribution of briefs and social security amongst junior members of bar merits consideration. Besides every judicial officer numbering around 15,000, should be assisted by junior lawyer and expenses thereof must be defrayed by the Government through budgetary allocations. It is pity that majority of lawyers whose competence is unquestionable remain under utilised. Sections – 2(j) and 5 of FEMA, 1999 stipulates that remittance for a availing of legal services falls within current account transaction and can be freely effected in convertible foreign exchange. Today the issue of legal regulatory compliances and avoiding litigation is a major concern for multinational operating in India.

This all the more underscores the need to protect the interest of our lawyers and law firms.

However lawyers in India must recognize that in an era of globalization, opening up of the legal services is inevitable.

Before this happens India must ensure inclusive growth of lawyers and insist on reciprocity and not yield tamely under international pressure.

Areas for improvement

In this dynamic world REFINEMENT IS THE KEY WORD with this changing scenario of technological development the role of lawyers has undergone a ‘Sea change.’ Adoption of new avatar is vital. IN SHORT ‘SURVIVAL OF FITTEST’. However, the Indian law practitioners are saddled with retrograde laws that govern them in areas such as advertising promotion, marketing and pricing. Antiquated British-era law prohibit Indian firms from having more than 20 partners they are also forced to have unlimited liability. Having a website listing of the lawyers in the firm and the work they do, is banned. Yet there is already robust competition between Indian and Foreign law firms, even in practice of Indian law. When Indian firms outperform the foreign firms backed Indian outfits history does not validate it as an international success, because there is no official clarity on what constitutes practice of Indian law.

The extensive recruitment of practi-tioners exclusively trained in Indian law set the standards and yet reflect an Asian discount. Mediocrity in Indian legal talent has never had better. Competition should be welcome with concomitant introduction of long-overdue reforms for the practice. In relation to the practice of foreign law, it would equally have to be precise about what constitutes the practice of foreign law. The irony lies in no one expecting the law governing lawyers to contain precision any better than Indian law.

Approach of United Kingdom

Indian lawyers practising in U. K. has jumped into the ongoing debate about opening up India’s legal services market to foreign lawyers, objecting to any such move without ensuring reciprocal entry clearance for Indian lawyers in U. K. They have intervened to have their say in court as an interested and affected party. The root of objection is that a move to open up the Indian market to UK lawyers will enable them to start business in India, but Indian law firms and legal professional cannot do same in UK without stumbling over entry qualification tests and work permit and immigration restrictions. Liberalisation, they argue, should be a two-way street and international law firms can give their Indian counterparts exposure to international transactions. Indian law firms can participate in UK client’s competition by providing similar quality services at a fraction of the price charged by the big players. Any true market opening up should be ‘not just an eastward movement of English enterprise’, as is being envisaged. Legal services are an area where UK believes it has comparative advantage and the focus on opening up the Indian market to foreign practitioners is high.

Last year an MOU was signed between the "All India Bar Association and the Law Society of UK and Wales" where the ALL INDIA BAR ASSOCIATION dropped its objection to the entry of foreign lawyers on the basis of assurance that foreign lawyers would not look to practice litigation or appear in courts. However, British Indian Lawyers point out that the Law Society is a private body representing solicitors, who anyway do not appear in UK courts, which only qualified barristers can do. It also points out that ALL INDIA BAR ASSOCIATION is private body consisting largely of lawyers who do appear in Indian courts and do not represent the legal community in India which is the role of the Bar Council of India. Indian lawyers should have the right to practice in England and Wales without having to pass ‘The Qualified Lawyers Transfer Test’. The Indian Advocate Act does not contain a requirement similar to ‘The Qualified Lawyers Transfer Test’. The Act provides that foreigners may be admitted as an advocate if Indian nationals are permitted to practice law in their country.

Conclusion

DIVIDE AND RULE is old aged weapon adopted against India. We have not received any assurance or indication of reciprocal opening up of the UK market for Indian lawyers to practice foreign law from the UK. The fear then is that foreign law firms will end up eliminating their Indian competitors and will create a situation similar to that which exists in the field of accounting but as a lawyer looking to be a part of an exciting and promising future, a career as a global legal professional is a compelling option that is here to stay.

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