Indian Bar Council voices concerns over partnerships between CMS and Dentons law firms in India
The Bar Council of India (BCI) has raised objections to the partnerships between Indian law firms and their international counterparts, citing violations of India's foreign law firm regulations.
The BCI, which governs the legal profession in India, strictly prohibits foreign law firms and lawyers from practicing Indian law, including advising on Indian law, litigating, or appearing in Indian courts. However, foreign firms can provide legal services on foreign and international law, subject to registration and compliance with BCI rules. Indian law firms can collaborate with foreign firms under strict conditions, but these collaborations cannot cross into unauthorized practice of Indian law.
Two of the most recent partnerships under scrutiny are those between Dentons Link Legal and CMS IndusLaw. Both alliances have structured themselves carefully to comply with BCI regulations, primarily focusing on foreign and international law advice and non-litigious work. They avoid activities barred under Indian law practice restrictions.
However, the BCI has expressed concerns about such alliances, particularly those resembling joint or "Swiss verein" models, because these may blur the lines defined by the Advocates Act and Supreme Court judgments. The Council stresses that no arrangement should enable foreign lawyers to indirectly practice Indian law.
The BCI also emphasizes the need for firms to register and comply with procedural formalities if foreign lawyers or firms wish to operate offices in India to provide permissible services such as arbitration or advice on international law.
In response to the BCI's concerns, both Dentons Link Legal and CMS IndusLaw have indicated they will provide detailed responses to the BCI's formal notices, setting up a significant regulatory dispute. Dentons Link Legal asserts that it is wholly owned, controlled, and managed by Indian advocates, and its combination with Dentons has been and continues to be fully compliant with all laws, including the Advocates Act.
CMS IndusLaw, on the other hand, denies any rule violations and operates as an independent Indian law firm. The firm's practice does not enable foreign lawyers to practise Indian or foreign law in India. In response to the BCI's press release, CMS IndusLaw expressed dismay and surprise, characterising the actions as being based on misconception and surmises.
The BCI's updated 2025 rules require registration for any arrangement involving an Indian and foreign law firm. Failure to comply may result in action under the Advocates Act and the Rules, including penalties. The BCI plans to send notices to the firms, asking them to provide written explanations and documentation about their arrangements.
As the regulatory environment remains ambiguous and strictly monitored, both Dentons Link Legal and CMS IndusLaw have promised to issue appropriate responses to the BCI's communication. Dentons Link Legal emphasizes its Indian presence, operating from offices across seven cities, while CMS IndusLaw announced an exclusive partnership with Dentons earlier this year.
The ongoing dispute between the BCI and these international collaborations highlights the need for clarity and compliance in the increasingly interconnected global legal landscape.
- The Bar Council of India (BCI) stresses that foreign law firms and lawyers must refrain from practising Indian law, even in partnership with Indian law firms, to comply with India's foreign law firm regulations.
- Both Dentons Link Legal and CMS IndusLaw, under BCI scrutiny for their partnerships, have focused on foreign and international law advice while avoiding activities restricted by Indian law practice regulations.
- To maintain compliance with the updated 2025 rules by the BCI, companies like Dentons Link Legal and CMS IndusLaw must register their arrangements involving Indian and foreign law firms, with potential penalties for non-compliance.
