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Dated: 15.02.2025

Entry of Foreign Law Firms envisaged in the proposed Draft Advocates (Amendment) Bill, 2025

The Advocates Act, 1961, serves as the primary statute regulating the legal profession, the Advocates (Amendment) Act, 2023, introduces modifications to the 1961 Act, and the Advocates (Amendment) Bill, 2025, proposes further amendments aimed at modernizing and reforming legal education, practice, and professional accountability.

1. The Advocates Act, 1961

The Advocates Act, 1961, is the foundational statute that:

• Established State Bar Councils and the Bar Council of India (BCI).
• Laid down provisions for enrollment, regulation, and disciplinary control of advocates.
• Provided for exclusive rights of advocates to practice law in courts.
• Defined the qualifications and disqualifications for legal practice.
• Included provisions for disciplinary proceedings and penalties for misconduct.

Key Sections of Interest:

• Section 29 & 30: Advocates are the only class entitled to practice law.
• Section 35-44: Provisions for disciplinary control and penalties for misconduct.
• Section 45: Penalties for unauthorized practice of law.
• Section 50: Repeal of prior laws related to legal practitioners.

2. The Advocates (Amendment) Act, 2023

The 2023 Amendment introduces:

1. New Section 45A – Listing and Regulation of Touts:

• High Courts, District Judges, and Magistrates can prepare and maintain lists of touts (unauthorized persons soliciting legal work for lawyers).
• Those identified as touts can be excluded from court premises and penalized.
• Defines a “tout” as someone who procures legal clients for remuneration.

2. Repeal of Certain Sections of the Legal Practitioners Act, 1879:

• Section 1, 3, and 36 of the Legal Practitioners Act, 1879 are repealed.

Impact of the 2023 Amendment:

• Strengthens the power of courts and authorities in curbing touting and malpractice.
• Enhances professional integrity by preventing intermediaries from engaging in unethical legal business practices.

3. The Advocates (Amendment) Bill, 2025

This proposed bill aims at modernizing legal practice and legal education in India. It introduces substantial reforms including:

1. Introduction of Advisory Boards & Bar Associations (Section 2 Amendments)

• Advisory Board to develop legal education, research, and the profession.
• Bar Associations formally recognized under State Bar Councils.

2. Expansion of the Bar Examination (Section 2)

• Defines “Bar Examination” as an essential requirement not only for enrollment but also for continuation in practice.

3. Regulation of Legal Practice (Section 2)

• Defines “Legal Practitioner” to include those working in corporate legal departments, tribunals, foreign law firms, and NGOs.
• Requires periodic verification of credentials (new “Verification Certificate” introduced).

4. Reform in Bar Council Membership (Section 3)

• Introduces restrictions on advocates facing criminal trials from holding positions in Bar Councils.
• Central Government to nominate up to three members in the Bar Council of India.

5. Stringent Disciplinary Provisions (Section 7, 9, 9B)

• Expands powers of the Bar Council of India (BCI) to verify educational qualifications and places of practice.
• Establishes a Public Grievance Redressal Committee for complaints against Bar Council members.

6. Verification & Transparency in Enrollment (Section 19A)

• Requires five-yearly verification of all advocates to ensure active legal practice.
• Enhances Bar Council oversight in identifying non-practicing advocates.

7. Recognition of Foreign Legal Qualifications (Section 7)

• Allows foreign legal degrees to be considered equivalent to Indian law degrees on a reciprocal basis.

8. Regulation of Legal Education (Section 7)

• BCI will oversee entrance exams for law courses and establish continuing legal education requirements.
• Recognition and accreditation of law firms by the Bar Council.

9. Election Reforms in State Bar Councils (Section 8)

• Bar Council of India (BCI) to intervene and conduct elections if State Bar Councils fail to do so within their tenure.

10. Welfare Provisions (Section 7, 24)

• Establishment of funds for indigent and disabled advocates.
• Legal aid for SC/ST communities, women, and differently-abled individuals.

Impact of the 2025 Bill:

• Strengthens transparency and accountability in legal practice.
• Introduces mandatory verification of credentials to weed out fake advocates.
• Enhances ethical standards through more stringent disciplinary measures.
• Provides greater government oversight while ensuring Bar Council independence.
• Expands access to legal education and continuous professional development.

III. Comparative Analysis & Key Implications

Aspect	Advocates Act, 1961	Advocates (Amendment) Act, 2023	Advocates (Amendment) Bill, 2025
Regulation of Practice	Establishes exclusive rights for advocates	Introduces penalties for touts	Mandates regular credential verification
Bar Examination	Required for initial enrollment	No change	Required for continued practice
Legal Education Reforms	Bar Council oversees education	No change	Introduces legal entrance exams & continuing education
Foreign Qualifications	No recognition of foreign degrees	No change	Allows recognition of foreign law degrees on a reciprocal basis
Bar Council Elections	Bar Councils self-regulate	No change	BCI empowered to conduct elections if State Bar Councils fail
Ethics & Discipline	Disciplinary Committees regulate misconduct	Focus on touting prevention	Expands disciplinary control, bar on criminally charged members
Welfare & Legal Aid	Limited provisions	No change	Expands aid for SC/ST, women, disabled lawyers
Government Involvement	Independent Bar Councils	No change	Introduces Central Government-nominated members in BCI

IV. Conclusion & Recommendations

1. Legal Profession Oversight:

• The 2023 Amendment is narrowly focused on eliminating touting, while the 2025 Bill aims for comprehensive legal reform.
• More stringent oversight mechanisms are necessary to weed out fraudulent advocates.

2. Legal Education & Bar Examination:

• The 2025 Bill’s proposal for continuing legal education and periodic Bar Exams is a progressive step.
• However, detailed guidelines should be formulated to ensure equity and accessibility.

3. Disciplinary & Ethical Reforms:

• Restricting convicted individuals from Bar Councils is a positive change.
• The creation of a Public Grievance Redressal Committee will improve transparency.

4. Foreign Qualifications & Law Firms:

• Recognizing foreign legal degrees is a major shift but should be subject to equivalency exams.
• Regulation of law firms under the BCI is a welcome move.

5. Government Influence & Autonomy:

• The introduction of government-nominated members in the BCI raises concerns over independence.
• A clear balance must be struck to ensure autonomy while promoting accountability.

Final Verdict

• The 2023 Amendment is a minor reform, whereas the 2025 Bill is a transformative step toward modernizing legal practice.
• However, government intervention in Bar Councils should be carefully monitored to preserve professional independence.

In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.

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Source: Ministry of Law, Govt. of India

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