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  • 8/9/2019 Covington & Burling

    1/15

    IN

    'iI{E

    :;UPRE}v1E

    CCURT

    OF

    INDIA

    SPECIAL

    LEAVts

    PETITION

    (under

    Article

    i3ii

    of

    the

    Constitution

    of

    lndia)

    Special

    Leave

    Petition

    (Crvil)

    No'17150-17154

    of

    2012

    IN

    THE

    MA'ITER

    OF:

    The

    Bar

    Council

    ot

    lndia

    21,

    Rouse

    Avenue

    Institutional

    Area

    New

    Delhi

    -

    I

    l0

    002

    Pi:titioner

    ResPondcnts

    -Vs-

    .f4),

    ,,1...'.;,::

    A.K.

    Balaji

    7l

    lO7

    ,

    Mel

    Batcira

    Pet

    l-larur,

    Tamil

    Nadu

    -

    $6

    9A3

    And

    39

    others

    {'rr{-

    COUNTER

    AFFIDAVIT

    FILED

    ON

    BEHALF

    Oi'

    RESPo$dvr

    No'r:'

    covrNcroN

    &

    BURI-Ii{G

    LLP

    l

    I,

    Ralph

    C'

    Voltmer'

    Jr''

    son

    of

    Ralph

    C'

    Voltmer'

    Sr''

    agcd

    aboui

    52

    years,

    with

    office

    at

    Covington

    &

    Burling'

    LLP''

    l20l

    Pennsylvania

    Ave''

    NW,Washington,DC,UnitedStatesofAmerica'dohercbysolemnly

    athrm

    and

    sincerely

    state

    as

    tbllows:

    l.

    I

    am

    one

    of

    the

    partners

    of

    this

    Respondent

    and

    therEtbre,

    I

    arn

    acquaintedwiththefac$anddulyauthorizedtoalfrrmthiscountcr

    atf]davit'IhavercadthespecialLeavePetitionfiiedbytlrePetitioncr

    hereinandherebydenytireaverTncntscontainedtherein(exccpttoihd

    extentexpresslyadrrritted)onthebasisofrnyknowleclge,ilrlbrnlationand

    legal

    advice'

    V(cL*KIG"A

    )

    Qo rr"*.',iotuo*

    , "-',",

    iiloi-'C

    Criinrcr

    w

    couJrell

    PRELIMINARY

    OBJ

    ECTIOI{

    S

    :

  • 8/9/2019 Covington & Burling

    2/15

    iBr"

    v

    2. The

    Petition

    is liable

    to be

    dismissed

    in liminc

    for

    reasons

    set

    out

    ln

    this

    counter

    affidavit

    and

    to

    be

    urged

    at

    the

    time

    of making

    written

    and

    oral

    submissions.

    The

    Petition

    does

    not

    present

    any

    substantial

    question

    of law

    or

    fact.

    This

    Respondent

    does

    not have

    a

    law

    office

    in lndia

    and

    it

    does

    not

    give Indian law

    advice

    to

    its

    clients as

    alleged

    by

    the

    Petitioner

    in

    the

    Petition.

    The

    Petitioner

    does

    not have

    locus

    standi

    to

    file this

    Special

    Leave

    Petition.

    There

    is

    no contradiction

    in

    the

    ruiings

    of

    the

    Bombay

    High

    Court

    and

    the

    Madras

    High

    Court

    as

    incorrectly

    alleged

    in

    the

    Petition'

    Therefore,

    there

    is

    no

    germane

    issue

    for

    considEration

    by

    the

    Hon'ble

    Supreme

    Court.

    REPLY

    TO

    THE

    SYNOPSIS:

    3.

    The

    statements

    in

    the

    synopsis

    are

    incorrect

    and

    rnisleading'

    ln

    particular,

    the

    Petitioner

    has

    averred

    that

    the

    issues

    that

    arose

    in the

    case

    before

    the

    Madras

    High

    Court

    were

    the

    same

    as

    the

    issues

    before

    the

    Bombay

    High

    Court

    in

    Lawyers

    Collective

    Vs.

    Bar

    Council

    of

    India'

    2010

    (l12)

    Bombay

    Law

    Report

    32

    (the

    Lawyers'

    collective

    case).

    This

    averment

    is factually

    incorrect

    and

    is,

    therefore'

    misleading

    and denied'

    4.

    In

    the

    Lawyers',

    collective

    case,

    the

    Bombay

    High

    court

    was

    required

    to

    adjudicate

    on

    the

    validity

    of

    licenses issued

    by

    the

    Rcserve

    Bank

    of India

    to a

    few

    tbreign

    law

    tirms

    under

    Section

    29

    of the

    Foreign

    Exchange

    Regulation

    Act,

    1973.lt

    was contended

    that the

    Advocates

    Act'

    l96l

    (Advocates

    Act)

    only

    deals

    with the

    practice

    of Indian

    law

    in

    court

    and that

    it does

    not deal

    with

    or regulate

    the

    practice of Indian

    law

    outside

    court.

    On this

    basis,

    it

    was

    further

    contendEd

    that

    foreign

    lawyers

    are

    entitled

    to

    provide

    transactional

    and

    advisory

    services

    in

    relation

    to

    mattsrs

    :

    .]

    ir'tt'f

    tl'

    pl

  • 8/9/2019 Covington & Burling

    3/15

    ,,

    .:,.i

    t:

    i'

    ,

    -"-)

    SovemedbyIndianlaw'ThiscontentionwasrgjectedbytheBombay}ligh

    Courtwhichheldthatthepracticeoflaw,undertheAdvocatesAct,covers

    bothlitigationandtransactional/advisorypractice'Theissueofwhether

    adviceconcerningforeignlawisregulatedbytheAdvocatesActwasnot

    raised

    before

    the

    Bombay High Court'

    5.lndistinctconuast,A.K.Balaji,thePetitionerbeforetheMadras

    HighCourt,contendedthattheAdvocates,Actgovernsthepracticeofall

    laws,

    whether

    Indian

    or

    foreign,

    within

    the

    tenitory

    of

    lndia.

    ln

    response'

    thisRespondentsubminedthatitdoesnothaveofficesinlndiaandthatits

    lawyers

    do

    not

    practice

    Indian

    law'

    Further'

    it

    was

    contendcd

    that

    the

    AdvocatesActdoesnotdealwithorreguiatethepracticeofforeignlaw

    andthat,inparticular,theAdvocatesActdoesnotprohibitforeignlawyers

    tiomprovidingservicesinlndiainrelationtonon.Indianlaw.Becausethis

    issuewasneitherraisedbyanyofthepartiesnoradjudicatedbythe

    BombayHighCourtintheLawyers,Collectivecase,thisissuewasres

    integra

    and

    was

    required

    to

    be

    decided

    by

    the

    Madras

    High

    Coutl'

    6.

    In

    the

    impugned

    judgment'

    the

    Madras

    High

    Court

    accepted

    the

    submissionofA.K'Balajithatthepracticeoflawcoversbothlitigation,and

    non.litigation,practice.Inreachingthisconclusion,theMadrasHighCourt

    ret.erredto,andreliedupon'thedecisionoftheBombayHighCouninthe

    LawYers,Collectivecase.Inaddition,theMadrasHighCourtacceptedthe

    contentionofthisRespondentandtheotherforeignlawfirmsthatthe

    AdvocatesActdoesnotdealwith,regulatEorprohibitrhepracticcof.

    foreign

    law.

    For

    these

    reasons,

    it

    is

    incorrect

    to

    state

    that

    the

    judgments

    ol

    theMadrasHighCourtandtheBombayHigtrCourtarecontradictory'

    .:

    {,r/rrrrlfar,l

    #"ffm,$s#&iryl

    ffitgYa'at6

    $ir

  • 8/9/2019 Covington & Burling

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    qY[l

    T.Withoutprejuclice,thisRespondentisalsoadvisedbycounsclto

    state

    that

    the Madras

    High

    court

    is

    not

    bound

    to

    tbllow

    the

    judgment ol'the

    Bombay

    High

    Court.

    REPLYToTHENARRAI.IONoFDATESANDEVEN.|S:

    8.Forthesamereasons,thenarrationofdatesandeventsisalso

    incorrect

    and

    misleading.

    In

    adiiition,

    in this

    connection

    this

    Rcsportdcnt

    is

    advised

    by

    counsel

    to

    state

    that

    Section

    47

    ol

    the

    Atlvocatcs

    Act

    deals

    rvith

    the

    practice

    of

    Indian larv

    by

    persons

    who

    are

    not

    citizcns

    ot'

    India'

    Theretore,

    the

    Bar

    Council

    of

    lndia

    is

    authorized

    to

    permit

    non-citizcns

    with

    foreign

    legal

    qualitlcations

    to

    practice

    Indian

    law

    if

    reciprocity

    requirements

    are

    lulfi

    lled.

    g.

    As

    regards

    the

    exercise

    of

    disciplinary

    authority

    over

    lbreign

    larvyers,

    this

    Respondent

    submits

    that

    all

    its

    lawyers

    are

    subject

    to

    thc

    disciplinary

    control

    of

    specific

    supervisory

    bodies

    in

    the

    relevant

    horne

    jurisdiction.

    Moreover,

    the

    Bar

    Council

    of

    lndia

    is

    not

    entitled

    to

    exercisc

    such

    disciplinary

    control

    unless

    the

    law

    so

    provides'

    At

    this

    juncture'

    this

    Respondent

    is

    advised

    by

    counsel

    to

    state

    that

    the

    Advocates

    Act

    and

    thc

    Ilar

    council

    of

    India

    Rules

    (the

    BCI

    Rules)

    do

    not

    empower

    the

    exercisc

    o1'

    disciplinary

    control

    by

    the

    Bar

    Council

    of

    India

    ovcr

    lbreign

    larvycrs

    practicing

    tbreign

    larv

    in

    lndia'

    10.

    The

    narration

    of

    t-acts

    in

    relation

    to

    the

    contents

    of the

    af'tidavit

    lllcd

    by

    A.K.Balaji

    and

    the counter

    atfidavits filed'by

    each

    of

    the

    Respondepts

    is

    incomplete.

    ln

    particular,

    the

    Petitioner

    herein

    has

    not

    adverted

    to

    tlte

    4rU't'ai^n'/r

    /U

    m,a;wKl

    lArsoN

  • 8/9/2019 Covington & Burling

    5/15

    ir:i: i

     

    averrnents

    in

    the

    counter

    affidavit

    of

    this

    Respondent

    in

    response

    to

    A.K.Balaji,saffidavit.ThisRespondentrequestsleavetotreatthecontents

    of

    its

    counter

    aflldavit

    in

    the

    Madras

    High

    court

    as

    an

    integral

    part

    of

    this

    counter

    afflrdavit

    so

    as

    to

    avoid

    repetition

    of

    the

    contents

    thereof'

    A

    copy

    ot

    thecounteraffrdavitfiIedbelbretheMadrasHighCourtisannexedhereto

    as

    "Annexure

    R1".

    ll.Inaddition,thisRespondentisadvisedtosubmitthatnoneofthe

    provisions

    of

    the

    Advocates

    Act

    or

    the

    BCI

    Rules

    ret-er

    to'

    or

    deal

    with'

    the

    practice

    of

    tbreign

    law

    or

    international

    law

    within

    the

    territory

    of

    India'

    on

    aliteralinterpretation,theAtlvocatesActcannotbeinterpretedasaStatutg

    that

    deals

    with

    the

    practice

    of

    foreign

    law

    or

    international

    law

    in

    lndia'

    Furthermore,itissubmittedthatthisRespondentisnotliabletobe

    restrainedfrompracticingtbreignlaworinternationailawwithinthe

    territory

    of

    lndia.

    Any

    such

    restriction

    would

    be

    without

    statutory

    mandate'

    12.

    Moreover,

    to

    attempt

    to

    regulate

    under

    the

    Advocates

    Act

    thc

    provisionofadviceonmattersofforeignlawbyforeignlawyerswhilcin

    India

    would

    be

    unreasonable

    for

    a

    number

    of

    reasons

    including'

    inter

    aliu'

    the

    fbllowing:

    a.

    ln

    the

    event

    that

    there

    are

    cases

    initiated

    against

    or

    by

    lndian

    companies,Govemmentagencies,PublicsectorUndenakingsor

    individuals

    before

    courts

    in

    the

    United

    states

    of

    America

    (usA/

    US)

    or

    US

    regulatory

    authorities,

    it

    would

    become

    necessary

    to

    engage

    US

    attorneys

    and

    seek

    the

    advice

    of

    such

    attorneys.

    At

    such

    instances,

    it

    may

    bccome

    necessaryforsuchattorneystot)yinandilyoutoflndiatomeetclicnts'

    ,,:

    l

    KrlrrKdl*n"D

    /#"tr'HHS###S**^

    Uy

    eultsrm

    ErPi6

    F buary

    28' At6

  • 8/9/2019 Covington & Burling

    6/15

    discuss

    the

    case,

    peruse

    documents

    and

    clarity

    their

    doubts

    if

    trny tbr

    ablc

    representation.

    Such

    visits

    may

    also

    be

    necessary

    when

    the

    attorncy

    concerned

    needs

    to

    elicit

    information

    concerning

    the

    case

    from

    more

    than

    one

    of

    the employees

    of

    a

    client

    and

    peruse

    all

    documents

    pertaining

    to

    the

    case

    So

    as

    to identiff

    relevant

    documents.

    In

    the event

    Such

    attomeys

    are

    not

    permitted

    into

    India

    in

    order

    tcl

    ably

    represent

    their

    clients

    on

    matters

    of

    us

    law,

    whether

    before

    us

    courts,

    us

    ariministrative

    agencies

    or

    otherwise,

    their

    Indian

    clients

    andlor

    their

    employees

    would

    have

    to

    schedule

    meetings

    out of

    India

    and ship

    or

    carry

    all

    documents

    pertaining

    to

    the

    case,

    whether

    relevant

    or

    irrelevant.

    This

    would

    substantially

    increase

    the

    costs

    of

    all

    those

    availing

    themselves

    of

    the

    services

    of

    fbreign

    lawyers

    -- whether

    the

    Indian

    Government,

    public

    sector

    undertakings,

    other

    lndian

    companies

    or individuals.

    b.

    According

    to

    Census

    data,

    lndia

    exported $36

    billion

    in

    goods

    to

    the

    (hnps ://www,census.Bov/forei

    gn-

    201I

    S

    in

    trade/statistics/product/enduse/imports/c533O.html).

    The

    makers

    of

    those

    products

    need

    to

    understand

    U.S.

    law

    on

    labeling

    and

    regulation

    of the

    products,

    as

    well

    as

    obtain

    advice

    on

    the

    law

    governing

    contracts

    with

    U'S'

    buyers

    and

    distributors.

    Similarly,

    Indian

    makers

    of

    export

    goods

    need

    to

    understand

    the laws

    of

    tho many countries other than the

    United

    States

    into

    which Indian

    goods

    are

    sold.

    Such

    an

    entity,

    e.g.,

    an

    Indiiur

    pharmaceutical

    tirm,

    might

    wish to

    have

    lawyers

    from

    numerous

    countries

    travel

    to

    India

    to

    discuss

    regulatory

    and

    labeling

    issues

    that

    bear

    on

    the

    products

    they

    export.

    It

    would

    be

    ineftlcient

    to

    forse

    ttte

    management

    of

    the

    company

    to

    visit lawyers

    in each

    country

    in

    wh.ich

    the

    Indign

    source

    products

    are

    sold'

    YrUKu.f-^hu,)

    / I

    fuzwtKwArsoN

    rd6rv

    ruarc

    uslntcr

    oF @alJr{B,A

    fry

    eaauin

    Beies f Uua,y8,

    At6

  • 8/9/2019 Covington & Burling

    7/15

      -

    -

    4q4r"fD^-at'

    ///

    fuLwKuJATsoN

    UCERv

    n

    q.lc

    rxsrrucr

    oF

    oougrr

    ..,.;.

    c.Manyinternationalcommercialcontractscontainanarbitration

    clause

    and

    a

    governing

    law

    clause.

    It

    is

    both

    legally

    permissible

    and

    plausiblethatinacontractbetweenanlndiancompanyandaforeign

    company,thegoverninglawisforeignlawwhereastheseatofarbitrationis

    lndia(anlndianclientmaynegotiatesuchaclauseinordertoreducecosts).

    In

    such

    a

    situation,

    it

    will

    be

    necessary

    to

    engage

    the

    services

    of

    lawyers

    qualifiedinthegoverning aw'However,suchservicesarerequiredtobe

    renderedinlndia'Inalllikelihood,theservicesoftbreignlawyers(non.

    citizens)

    who

    are

    not

    enrolled

    as

    advocates

    under

    the

    Advocates

    Act

    will

    bc

    required.

    If

    the

    interpretation

    canvassed

    by

    the

    Petitioner

    herein

    is

    to

    be

    accepted,

    it

    would

    be

    illegal

    for

    clients

    to

    engage

    the

    services of

    tbreign

    lawyers

    for

    such

    arbitration

    proceedings

    held

    in

    lndia,

    which

    would

    tbrce

    the

    clients

    to

    choose

    a

    location

    outside

    India

    as

    the

    seat

    of

    arbitration'

    As

    a

    result,

    the

    burden

    and

    costs

    on

    lndian

    clients

    of

    participating

    in

    such

    arbitrationproceedingswouldincreasesigniticantly.Moreover,sucha

    position

    would be

    contrary

    to

    the

    poiicy

    of

    the

    Indian

    Government

    tu

    actively

    promoting

    India

    as

    a

    destination

    for

    international

    commercial

    arbitration.

    Indeed,

    it

    would

    be

    contrary

    to

    the

    legislative

    mandate

    of

    the

    Arbitration

    and

    conciliation

    Act,

    1996,

    and

    the

    interpretation

    thercof

    by

    this

    Hon'ble

    Court

    and

    the

    High

    Courts'

    d.

    Foreign

    lawyers

    I

    law

    firms

    have

    been

    engaged

    by

    public

    scctor

    undertakings

    to

    provide

    advice

    in

    relation

    to

    disinvestments

    and

    public

    issue

    of

    shares.

    By

    way

    of

    illustration,

    ref.erence

    may

    be

    made

    to

    the

    disinvestmentprocessinitiatedbytheDepartmentofDisinvestment,

    Ministry

    of

    Finance,

    Government

    of

    Inclia'

    The

    Department

    of

    Disinvestment

    in

    its

    'Hand

    Book

    on

    Disinvestment

    *rough

    Public

    i'$ffi

    tty

    Coamjssim

    Epircs tusruary

    28,

    201

    I

  • 8/9/2019 Covington & Burling

    8/15

    .

    Ol-terings',

    mandated

    the

    appointment

    of

    international

    legal

    advisors

    in

    respect

    of

    the

    scope

    of

    work

    set

    out

    in

    Annexure

    ll

    thereto.

    Likewise,

    the

    prospectuses

    issued

    by

    NTPC

    Ltd.

    antl

    Coal

    India

    Ltd.,

    in

    connection

    with

    their

    follow-on

    public issue

    and

    initial

    public issue

    respectively,

    contain

    the

    names

    of

    their

    international

    legal

    counsel.

    In

    connection

    with

    such

    engagements,

    foreign

    lawyers

    have

    been

    invited

    by

    the

    Governmcnt

    or

    public sector

    undertakings,

    as

    the

    case

    may

    be,

    to

    attend

    meetings

    in

    lndia

    to

    provide

    advice

    on

    tbreign

    or

    international

    law.

    No

    relaxation

    has

    been

    granted by

    the

    Petitioner

    herein

    in

    this

    regard

    by

    exercising

    powers

    under

    Section

    47(2) of

    the

    Advocates

    Act.

    e.

    Several

    leading

    Indian

    companies

    such

    as

    Dr.

    Reddy's

    Laboratories

    Ltd.,

    HDFC

    Bank

    Ltd.,

    lclcl

    Bank

    Ltd.,

    Infosys

    Technology

    Ltd''

    Tata

    Motors

    Ltd.

    and

    Wipro

    Ltd.

    have

    issued

    American

    Depository

    Receipts

    (ADRS) or

    other

    securities

    in

    the

    USA.

    In

    connection

    therewith,

    foreign

    law

    firms

    have

    been

    appointed

    to advise

    Ildian

    comPanies

    on

    such

    otferings'

    on

    such

    occasions,

    it becomes

    necessary

    for

    us

    lawyers

    to

    fly

    into

    India

    to

    appropriately

    advise

    their

    clients

    on

    US

    laws

    and

    fly

    back

    to

    the

    US'

    13.

    Likewise,

    this

    Respondent

    t'iled

    a

    rejoinder

    in

    response

    to

    the

    counter

    aftrdavit

    of

    the

    Bar

    Council

    of

    India

    and

    the

    contents

    thereof

    rnay

    be

    treated

    as

    an

    integral

    part of

    this

    counter

    affidavit

    so as

    to avoid

    repetition.

    A copy

    of

    the

    Rejoinder

    is annexed

    hereto

    as

    "Atrnexure

    tt2"'

    REPLY

    WITH REGARD

    TO

    THE

    QUESTIONS

    OF

    LAW:

    14.

    On

    advice

    fiom

    counsel,

    this

    Respondent

    sets

    out

    below

    factual

    clarifications,

    relating

    to the

    questions

    of

    law,

    based

    both on

    the

    pleadings

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    .

    before

    the

    Madras

    High

    court

    and

    the

    observations

    and

    findings

    in

    the

    impugnedjudgmentsoasassistthisHon'bleCourtinframingappropriate

    questions

    of

    law

    lor

    consideration:

    i)

    ln

    reply

    to

    paragraph

    2

    (A):

    this was not an

    issue

    betbre

    the

    Madras

    High

    court

    because

    all

    the

    Respondent

    tbreign

    law

    firms,

    including

    this

    Respondent,categoricallyStatedthattheydonotPracticelnditrnlaw.ln

    fact,theimpugnedjudgmentrecordsthat"theprivaterespondentsherein'

    namelytheforeignlawtirms,haveacceptedthatthereisexpress

    prohibition

    for

    a

    foreign

    lawyer

    or

    a foreign

    law

    firm

    to

    practice

    lndian

    law."

    Therefore,

    the

    relevant

    question

    of

    law

    is:

    whether

    the

    practice

    of

    foreignlaw,onfly.infly-outbasis,isprohibitedbytheAdvocatesActand

    the

    BCI

    Rules?

    ii)Inreplytoparagraph2(B):thiswasalsonotanissuebetbrethc

    Madras

    High

    Court

    because

    none

    of

    the

    Respondent

    law firms,

    including

    thisRespondent,submittedthatthepracticeoflawdoesnotincludc

    transactional

    or

    advisory

    work.

    rndeed,

    the

    impugned

    judgment records

    that

    ,.the

    foreign

    law

    firms,

    who

    are

    the

    private

    respondents

    in

    this

    writ

    petition'

    have

    accepted

    the

    legal

    position

    that

    the

    term

    practice

    would

    include

    both

    litigation

    as

    well

    as

    non-litigation

    work, which

    is

    better

    known

    as

    charnbcr

    practice."

    iii)lnreplytoparagraph2(C):therelevantquestionoflawis:whether

    tbreign

    lawyers

    are

    required

    to

    enroll

    under

    the

    Advocates

    Act

    as

    a

    prc-

    requisite

    for

    the

    fly-in

    f)y-out

    practice

    of

    foreign

    law

    in

    lndia.

    ffiU,$##[o*is,r

    .'

    . :":>\

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    ia

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    '

    iv)

    In

    reply

    to

    paragraph

    2

    (D):

    there

    is

    no

    contradiction

    in

    thc

    impugnedjudgmentoftheMadrasHighCourtwhereinthejudgmcntofthe

    BombayHighCourtwasreferredtoandrelieduPontoconcludethat

    foreignlawyerscannotpracticelndianlawincourtoroutsidecourtwithout

    complying

    with

    the requirements

    of

    the Advocates

    Act

    and

    the

    BCI

    Rulcs'

    on

    the

    other

    hand,

    in

    relation

    to

    the

    practice

    of

    tbreign

    law,

    the

    Madras

    HighCourtheldthatthereisnobareitherintheAdvocatesActortheBCl

    Rules

    which

    prohibits

    the

    t1y-in

    fly-out

    practice

    of

    foreign

    [aw'

    Thcrcfore'

    thisquestionoflawhasbeenpreparedonthebasisofamisunderstanding

    of

    the

    impugned

    judgment'

    v)Inreplytoparagraph2(E):thestatementthateveryStrateBlc

    investment

    coming

    to

    India,

    as an

    investment

    decision,

    should

    be

    viewed

    in

    a

    holistic

    manner

    is

    contained

    in

    paragraph

    58

    of

    the

    impugned

    judgmcnt

    whichreferstotheobservationsofthisHon'bleCourtinVodalbne

    lnternationalB'V.Vs.Unionoflndia'(2012\6SCC6l3'Aquestionoflaw

    does

    not

    arise

    fbr

    consideration

    on

    the

    basis

    of

    this

    observation'

    vi)lnreplytoparagraph2F:.thisquestionshouldbeconsideredinthe

    context

    of

    the

    fact

    that

    international

    commercial

    arbitrations

    often

    involve

    tbreign

    law.

    REPLY

    TO

    THE

    GROUNDS:

    15.

    on

    advice

    fiom

    counsel,

    this

    Respondent

    sets

    out

    below

    its

    response

    to

    the

    grounds

    of

    aPPeal:

    l0

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    ,r"

    i)lnreplytoparagraph5(l)ofthePetition:asstatedearlier'thereisno

    contradictionintheimpugnedjudgmentoftheMadrasHighCourtwherein

    thejudgmentoftheBombayHighCourtwasreferTedtoandreliedupon

    withregardtothepracticeoflndianlawtoconcludethatforeignlawycrs

    cannotpracticelndianlawincourtoroutsidecourtwithoutcomplyingwith

    therequirementsoftheAdvocatesActandtheBClRules.ontheot}er

    hand,inrelationtothepracticeoffbreignlaw,theMarlrasHighCourthcld

    thatthereisnobareitherintheAdvocatesActortheBClRuleswhich

    prohibitsthefly.infly-outpracticeofforeignlaw.Therefore'thisgroundof

    challenge

    of

    the

    impugned

    judgment

    is

    liable

    to

    be

    rejected'

    ii)

    ln

    reply

    to

    paragraph

    5(II)

    of

    the

    Petition:

    the

    Madras

    High

    Cou(

    has

    referred

    to

    and

    relied

    upon

    the

    judgment

    of

    the

    Division

    Bench

    of

    the

    Hon'ble

    Bombay

    High

    Cou(

    in

    the

    Lawyers'

    Collective

    case'

    The

    impugnedjudgmentalsotakesintoconsiderationthepleadingsandoral

    submissionsonthisissueandrecords,inparagraph53oftheimpugned

    judgment,

    that

    "the

    foreign

    law

    tirms'

    who

    are

    the

    private

    respondents

    in

    thiswritpetition,haveacceptedthelegalposirionthatthetermpractice

    wouldincludebothlitigationaswellasnon-litigationwork,whichisbetter

    knownaschamberpractice.Therefore,renderingadvicetoaclientwould

    also

    be

    encompassed

    in

    the term practice'"

    ln

    addition'

    the

    impugned

    judgment

    records,

    in

    paragraph

    60'

    that

    "the

    private

    responden$

    herein'

    namely

    the

    tbreign

    law

    tirms'

    have

    accepted

    that

    there

    is

    express

    prohibitionloratbreignlawyeroraforeignlawfirmtopracticelndian

    law."Besides,theLawyers'Collectivejudgmentdoesnotdealwithor'

    record

    findings

    on

    the

    issue

    arising

    in

    the

    present

    Petition:

    whether

    forcign

    lawyerscanrenderlegaladvice'inlndia'onforeignlawonaflyin-fly

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    out

    basis'

    Further,

    and

    witho

    ut'

    p"luaiZ

    tn"

    CollectivewasnotbindingontheMadrasHigh

    ground

    of

    aPPeal

    is

    untenable'

    judgment

    in

    LawYers

    Court.

    Therefore,

    this

    iii)lnreplytoparagraPhs(ltl)ofthePetition:thestatutorydutyofthe

    PetitionerflowsfromtheAdvocatesActandis,consequently,confincdlo

    regulatingthepracticeoflndianlaw'Theimpugnedjudgmentaffrrmsthe

    Petitioner's

    powers

    in

    this

    regard'

    including

    the

    position

    practice

    Indian

    law

    without

    enrolling

    with

    the

    Petitioner'

    ground

    ofaPPeal

    is

    untenable'

    iv)

    ln

    reply

    to

    paragraphs

    5(lV)

    and

    (V)

    of

    the

    Petition:

    the

    impugned

    that

    one

    cannot

    Therefore,

    this

    ci

    r'

    .

    iar;r

    judgmentcorectlyappreciatesthefactthattherequirementsinScction24

    oftheAdvocatesActsupporttheinterpretationthatitisastatutethatdcals

    withlndianlawanditrightlyacceptsthataninterpretationprohibitingthe

    practiceofforeignlawbyaforeignlawfirminlndiaresultsinamanit.estly

    absurdsituationwhereinonlylndiancitizenswithlndianlawdcgree,who

    areenrolledasadvocatesundertheAdvocatesAct,couldpractigetbreign

    law,

    when

    the

    fact

    remains

    that

    foreign

    laws

    are

    not

    taught

    at

    the

    graduate

    level

    in

    lndian

    law

    schools,

    except

    comparative

    law

    courses

    at

    the

    Master's

    level.

    v)lnreplytoparagraph5(VI)ofthePetition:Asinthecaseofthe

    practiceofforeignlawingeneral,intheparticularcontextofinternational

    commercialarbitration,theHon,bleMadrasHighCourthaspermittedthe

    participationofforeignlawyersonthebasisthatinternationalcommercial

    arbitration

    often

    involves

    foreign law'

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    vi)Inreplytoparagraphs(Vll)ofthePetition:theprovisionof

    reciprocityundertheAdvocatesActpertainstothepracticeofthelndian

    lawandnotwithrespecttothepracticeofforeignlawbyatbreignlawyer

    onaflyin_t.lyoutbasis.TheHon,bleHighCou(afterconsideringand

    appreciating

    the

    relevant

    provisions

    of

    the

    Advocates

    Act'

    especially

    Sections

    2

    (a),

    17

    (l),24

    (

    I

    ),

    and

    47

    (l)' rightly

    held

    that

    "if

    a

    lawyer

    from

    aforeignlawfrrmvisitslndiatoadvisehisclientsonmattersrelatingtothe

    lawwhichisapplicabletotheircountr},forwhichpurposehefliesinand

    tlies

    out

    of

    lndia,

    there

    could

    not

    be

    a

    bar

    for

    such

    services

    rendered

    by

    such

    foreign

    law

    frrm/

    foreign

    lawyer"'

    16.

    In

    view

    of

    the

    foregoing,

    the

    order

    sought

    to

    be

    impugned,

    including

    theoperativeportion,is,inanyovent'justandfair'ltiswellsettledthat

    the

    Hon,ble

    supreme

    court

    will

    not

    interfere

    with

    a

    judgment

    of

    a

    High

    court

    if

    it

    is

    just

    and

    fair.

    Therefore,

    the

    impugned

    judgment

    of

    the

    Llon'ble

    Madras

    High

    Court

    calls

    for

    no

    intert-erence'

    REPLY

    TO

    THE

    GROUNDS

    FOR

    INTENM

    RELIEF:

    lT.Inreplytoparagraphs6(I)and(II)ofthePetition,thisRcspondent

    reiterates

    that

    it

    does

    not

    practice

    Indian law

    and does

    not

    have

    otlices

    in

    IndiaasrecordedbytheHighCourtintheimpugnedjudgment.Theretbre,

    the

    Petitioner

    has

    not

    made

    out

    a

    prima

    tacie

    case

    for

    interim

    orders'

    Thcre

    has

    been

    no

    statutory

    or

    judicial

    prohibition

    of

    the

    practice

    of

    foreign

    iaw'

    in

    India,

    till

    date,

    including

    during

    the

    pendency

    of

    the

    Petition

    beibre

    the

    Madras

    High

    Court

    13

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    -.:

    "

    18.

    An

    interim

    stay

    of

    the

    inrpugned

    judgment

    is

    likclY

    to

    bc

    misinterpretedbythePetitioneraSanorderrestrainingthepracticeol

    tbreignlawinlndia'AnysuchprohibitionrestrainingthisRespondenttiom

    renderinglegaladviceonlbreignlawtoitsclientswouldcauseineparablc

    hardshiptothisRespondentanclitsclients,bothlndiananritbreignAs

    alreadystated,itwouldincreasetransactioncostssubstantiallytbrlndian

    clientswhowillbeconstrainedtotraveloutsidelndiatoobtainadviceon

    non-lndianlawand,inanyevent,islikelytoimpairmatcriallythe

    provisionofadviceto,andrcPresentationof,lndiabasetJclientsonmatters

    of

    U.S. Iaw'

    19.

    This

    Respondent

    sutes'

    on

    inlbrmation

    and

    beliel

    that

    thc

    Governmentoflndia,variousStateGovernmentsandotherStateauthoritics

    alsorelyupontheServicesoftoreignlawtjrmsancllawyerslbrlegaladvice

    inrelationtolawsotherthanlnclianlaw.ThisincludesatJviceinthearcaof

    projectfinance,foreigninvestments,accessinginternationalmarkcts,in

    intemationaldisputeresolution,internationaltradeetc.Theirrtcrimordcrs,

    iigranted,wouldprejutiiciallyattecttheseactivitiesandthcrcby

    compromiselndia,sStrategicinterestsandbeagainstpublicinterestin

    gencral'

    20.

    Hence,

    tbr

    all

    of

    the

    above

    reasons'

    the

    balance

    of

    conveniencc

    is

    in

    tavour

    ot.this

    Respondent,

    and

    it

    is

    prayed

    that

    this

    llon'ble

    courr

    may

    bc

    pleased

    to

    reject

    the

    interim

    relief

    sought

    by

    the

    Petitioncr'

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    21.

    I

    saY

    that

    no

    before

    the

    Courts

    Afhdavit.

    )

    new

    facts

    or

    grounds

    which

    have

    not

    been

    pleaded

    below

    have

    besn

    pleaded

    in

    the

    present

    CountEr

    PRAYER

    ItisthereforeprayedthatthisHon,bleCourtmaybepleasedtodismissthe

    specialleavepetitionfiledbythePetitionerhereinandtopasssuchfurther

    orders

    as

    deemed

    fit

    in

    the

    interest

    ofjustice'

    VENFICATION:

    I,

    the

    deponent

    above

    named

    do

    hereby

    veriff

    that

    the

    contents

    of

    the

    above

    affidavit

    are

    true

    to

    my

    knowledge;

    the

    submissions

    made

    arE

    based

    on

    advicereceivedandbelievedtobecorrect;nopartofitisfaisearrdnothing

    material

    has

    been

    concealed

    therefrom'

    VerifiedbymeatWashington,DC,UnitedStatesofAmerioa'onthis2lst

    day

    of

    February,20l3'

    F,rtfrl)