Today mankind is entering a new phase of history made distinct by globalization which is cutting across all previous

barriers and boundaries - Dr. Adimola O. Popoola

Globalization must not be viewed from the restrictive sense as it connotes the process of making global, being
present worldwide. It has brought to the force universalisation of diverse issue of commerce, production,
consumption, trade and information technology. The increasing interdependence of the countries of world and
integration of domestic economies with the world economy has its effect on each and every sector of the developed
and developing countries alike.
Globalization can also be seen from different perspective as the growing interdependence and intensively of
interaction among nations and about the Nation State coming under pressure, from transnational phenomenon and
so on .
It has been defined as the broadening and deepening linkages of national economics into world market for goods
capital and special services . The concept of Globalization has brought about a growing tendency towards the
universal homogenization of ideas, cultures, values and even the lifestyles. Needless to say can the legal service and
the legal profession remains unaffected by this changing world order?
The Present paper attempts to analyze the impact of globalization on legal profession in India.
The Legal Profession in India
India has the worlds second largest legal profession with more than 600,000 lawyers . The predominant service
providers are individual lawyers, small or family based firms . Most of the firms are involved in the issues of domestic
law and majority work under country’s adversarial litigation system. The conception of legal services as a ‘noble
profession’ rather than services resulted in formulation of stringent and restrictive regulatory machinery. These
regulations have been justified on the grounds of public policy and ‘dignity of profession’ . The judiciary has
reinforced these principles, which can be reflected in words of Justice Krishna Iyer, when he noted, Law is not a
trade, not briefs, not merchandise, and so the heaven of commercial competition should not vulgarize the legal
profession. However over the years courts have recognized ‘Legal Service’ as a ‘service’ rendered to the consumers
and have held that lawyers are accountable to the clients in the cases of deficiency of services. In the case of Srinath
V. Union of India (AIR 1996 Mad 427) Madras High Court held that, in view of Sec. 3 of Consumer Protection Act,
1986. Consumer redressal forums have jurisdiction to deal with claims against advocates. Sec. 2 (U) of competition
Act, 2002 defines the term ‘Service’ along the lines of consumer protection Act, 1986. Thus it may be concluded that
legal services are becoming subject of trade related laws where consumerism and market forces should be given
adequate space .

Changing Face of Legal Profession

Globalization brought about a revolution in international trade with
increasing participation and involvement of countries & greater
access to domestic economies. The implication of the same on the
legal service sector has been both quantitative and qualitative. The
past decade has been mini-revolution in legal service sector with the
greatest legal impact on corporate legal arena Activities in project
financing, intellectual property protection, environmental
protection, competition law, corporate taxation, infrastructure
contract, corporate governance and investment law were almost unknown
before 90’s. Number of Law firms capable of dealing such work was
very few . It is evident that need of professional service has been
tremendous in the legal service sector. In last few years Law Firms,
in house firms and individual lawyer’s expertise in providing legal
services in corporate sector has increased by several times. These
new Law Firms primarily engage and loan instrument, writing
infrastructural contracts, power contract, drafting of project
finance, contracts, finalizing transnational investment, joint
venture and technology transfer contracts. This is discerning shift
in the disposition of emerging legal sectors towards settling
disputes through ADRS rather adversarial litigation mode of dispute
resolution Globalization has thus expanded the internal and external
demand for legal services . Today in legal services is on inevitable
fact. At the same time significant for progressive development of
legal profession in India in this era of Globalization.
Legal Service Sector
The term legal services sector is completely, different type of services as compared to software programming,
medical practice or other professional services. Though it is more or less protected from intrusion due to the fact that
its traditional base is derived not only from statutes and the existence of statutory bodies but also from conservative
and traditional mind set that inhibit development of cross border services supply. Even globally the legal services
sector is necessarily shackled by jurisdictional constraints such of the requirement for a degree from the country
where the service is to be imparted. Some local considerations apply only to certain aspects of legal services and not
to others. Where the local considerations are important they must be preserved and exceptions made, must only for
global market access. Thus on the one hand there is the need to be part of a global fraternity and to make beneficial
commitments that promote trade in services and on the other hand there is need to preserve national interest.
Foundation of Globalized Legal Services
World Trade Organization (WTO) is the successor of the General Agreement of Tariffs and Trade (GATT), which
ruled the world between 1960 and 1993. both Co-existed between 1994 and 1995, when WTO came into existence.
Services are brought for the first time under multilateral trading system under the Uruguay Round Agreements
launching WTO. Earlier the GATT System confined only to goods trade. The inclusion of services under the WTO in
1995 is a reflection of growing share of services in national economics world over. It is on indication that trade in
services is set to play on all important role in the economic development of countries in future . The ‘developed’ west
Economics are specializing in knowledge based service and this GATS entered the WTO agenda in 1995 . It is
among the WTO’s most important and the first and only set of multilateral rules concerning International Trade in
services. It was negotiated by the Governments themselves and set the framework agreement containing general
rules and disciplines and the national schedules, which list basic commitments on behalf of individual countries. As
with the GATT, GATS serves to create a Most Favoured Nation (MFN) status for members of the WTO through
specific commitments that allow non-discriminatory treatment to be given to foreign suppliers from overseas.
Members have complete freedom to select which services to commit and while granting access a country may
however limit the degree to which foreign services provider can operate in the market. Thus, it is possible for a
country like India to limit the number of foreign legal practitioners who may be licensed to practice here. But it goes
much further than that. A whole range of non-tariff barriers exist which countries may either commit to remove, dilute
or otherwise restrict in their operation so as to create a more friendly trading environment within which services can
be provided across national barriers. GATS achieves its objectives following basic GATT principles using. Most
Favoured National treatment under Article II and XVII respectively while aiming to reform markets and yet allow
special and differential treatment for developing countries. The two excepts to GATS are-
(i) services provided to the public in the exercise of governmental authorities and,
(ii) in the Air transport structure, traffic, rights.
GATS provides for trade in services through four different modes which are defined in paragraph 2 of Article I.
a) From the territory of one member into the territory of any other member.
b) In the territory of one member to the service consumer of any other member.
c) By a service supplier of one member, through commercial presence in the territory of any other member.
d) By a service supplier of one member, through presence of natural persons of a member in the territory of any other
member.
The GATS schedules refer to each of these modes and all commitments are made accordingly.
GATS classification & Legal Services
There are 12 sectors classified by GATS for which commitments may be made one of them is Business Services.
Business Services is further divided into 6 types of services, which include professional services. The Professional
service sector further divided into 11 services, which include Legal Services.
India has made only specific commitments in relating to engineering services.
India has made no commitments in the legal services sector at present. This may be contrasted with commitments
mode by 44 countries in the legal service sector even same developing countries have made commitments. Such
commitments are beneficial to all i.e. to countries and to consumers. As these commitments will bring Trade in the
legal services which will play crucial role benefiting consumers countrywide.
Trade in Legal Services : Benefits to Consumers
The emerging legal service sector is equally beneficial to all consumers of legal services, without discrimination . In
the age of consumerism and competition law, consumers right to free and fair competition is paramount and cannot
be denied by any other consideration . Trade in legal services focuses on benefits accruing to consumers from legal
service sector, particularly the quality of service available with respect to particular fields. In the case of In Re Sanjiv
Datta, Secretary, Ministry of Information and Broadcasting . The supreme court observed, Some of the members of
the profession have been adopting prospectively casual approach to the practice of the profession. ……they do not
only amount to contempt of court but to the positive disservice to the litigants. In our country must often consumers
are at the mercy of advocates and the system and they resort to any other service provider in absence of choice.
Secondly, the services available to consumers of India are only domestic legal service providers. Corporate legal
activities are recent phenomenon in India and solution of some complicated legal issues can only be granted by
professional International Law firms hence allowing them shall be beneficial for satisfaction of consumers in India
Many countries across the globe resort to Legal Process Outsourcing (LPO) and gain best of the legal services and
solutions at competitive prices. Existing regulations deprive consumers to derive benefit, which ultimately effects
development .

Regulations on Legal Services Trade

Further it is submitted that there exists various restrictions on
trade oriented legal service sector, which heavily hampers interest
of consumers of legal services. Hence following points need
reconsideration and fundamental charge of mindset.
1. In India there is an absolute bar on advocates advertising and soliciting for any purpose and indicating area of
specialization . Restrictions on advertising by lawyers in India have resulted in a situation where consumers can not
make an informed choice from the competitive market since the information relating to service is not available to
them. Moreover restrictions on professional firms on the informing potential users on range of their services and
potential causes further injury to the competition
2. The Bar Council of India Rules, 1975 in chapter III Rule I, prohibits advocates from entering into partnership or any
other arrangement for sharing remuneration with any person or legal practitioner who is not an advocate. Lawyers
cannot enter in co-operation with non-lawyers. Prima facie there seems to be no pro competitive justification for such
a regulation. Such a measure as hampered the delivery of services to the consumer and anticompetitive . The
absolute bar has been lifted to some extent with the institute of Chartered Accountants permitting tie-ups between
lawyers and Chartered Accountants.

3. The regulatory and legal system in India has the effect of limiting the size of legal establishment. Sec. 11 of the
companies Act, 1956 stipulates that a partnership or any form of association with more than 20 members if not
registered as company shall be an unlawful assembly.

4. In India only natural person can practice law, as is evidenced by combined reading of Sec. 24, 29, and 33 of
Advocates Act and artificial body cannot act as a lawyer. Justification for such restriction is on public policy grounds
and in particular to ensure professional responsibilities and liabilities. This a legal service provider can not be
incorporated as a company and still continue in practice the profession of law in India, as per the provisions of
Advocates Act, 1961.
5. The Requirement that Advocates enter into partnerships only with other Advocates has the effect of prohibiting
partnerships with foreign firms. The effect to the provision is that partnerships can not be entered into between Indian
Lawyers and those of other countries. These restrictions on incorporation and size of partnerships, prohibition on
entering into partnership with foreign firm and lawyers; has limited the size and growth of the profession as well as
professionals and prevent them from being globally competitive.
6. The Lack of restrictions on partnerships across the world has given rise to firms with a member of partners. Big law
firms having wide controlling, regulating and functioning power nationally and internationally. In sharp construct
Indian firms are small and incapable of associating with legal experts firms other countries. This way Indian law firms
are at disadvantage to law firms to U.S. and E. U .
The professional regulations are in all likely hood protecting the weak producers of professional services at the cost
of information being made available to consumers opening up to legal service sector to foreign law firms and its
interaction with growing arena of international trade shall be beneficial for development of the sector. The existing
state of decay that the justice delivery system of country finds itself in is to a certain extent attributable to the
overprotected legal regime that they have been provided with and some of the members have adopted a “Casual
approach” to the practice of law .
The Apex Court has warned that if the present trend is not checked it is likely to lead to a state where the system is
found wreaked from within before it is wreaked from outside.
Conclusion
Opening up of legal services sector is going to lead to a flow of expertise in sectors where local firms and lawyers are
deficiently delivering services. Accepting ‘trade’ facet of legal services would develop the profession qualitatively.
The Raghavan Committee has summed up the effect of the existing regulatory system in professional services. The
legislative restrictions in terms of law and self regulation have the combined effect of denying opportunities and
growth of professional firms, restricting their desire and ability to compete globally, Preventing the country from
obtaining advantage of India’s considerable expertise and precluding consumers from opportunity on free and
informed choice.
Nonetheless today or tomorrow we have to open up out legal service, but if should not seen as a threat but an
opportunity to complete in more & more countries. As soon as Indian perspective in concerned, already Indian legal
service section is hugely crowded, will opening up of legal service in India will only overhead if it’s bring word class
service job all needs to be
I would like to conclude only with a thing, that how globalised the word may became, & how professional peddle may
became, that in race of globalization which & professionalism, they shall continue to remain agency through which
people can get justice

In India the legal profession, to this date,  is considered a noble

profession and thereby still assessed by standards of legal ethics that may
seem outdated in many other jurisdictions abroad, but are considered a very
important part of the legal profession in India, despite the change in thinking
that liberalisation has inevitably brought. The Bar Council of India still
maintains strict standards with respect to the legal community. An example of
this is Rule 36 of the Bar Council of India Rules whereby the Indian Law
firms/ lawyers are not allowed to advertise their practise in the market. 
The judiciary has acknowledged the substance of this restriction in various
cases. That is not to say that the Bar Council of India has been completely
blind to the realities of liberalisation, as would be evident from its decision to
amend Rule 36 and add a proviso allowing advocates to maintain websites
about themselves or their law firms in order to disseminate information, in
order to enable people to make informed choices.

The Bar Council of India is progressively reviewing the ethical standards

with the demands of our time, in order to strike the best balance. Recently,
the Bar Council in a seminar on ‘Professional Ethics’ considered whether to
reform standards of ethics and professional conduct in India in order to better
reflect the standards of the International Bar Association, of which it is a
member, and standards under the UIA Rules. Champerty and contingency fee
arrangements have always been illegal in India, and there is nothing to
suggest that there is any reason for changing such thinking in the near future.

An important question arises whether Advocates & Chartered Accountants can be prosecuted under the provisions of
Consumer Protection Act for negligence or deficiency in service. It would be trite to refer to a recent judgment of the
Apex Court in Nandlal Lohariya Versus Jagdish Chand Purohit and others in SLP (C) DIARY NO. 24842 OF 2021
decided on November 8, 2021. The brief facts of the case are that the Petitioner filed three complaints before the
District Forum through three advocates against BSNL which were dismissed by the District Forum on merits.
Thereafter the the petitioner filed a complaint under the Consumer Protection Act against the three advocates who
appeared on his behalf  alleging deficiency in service on their part in contesting his cases before the District Forum
and demanded a compensation of Rs. 15 lacs. The District Forum, the State Commission and the National
Commission dismissed the said complaints against which SLP was filed in the Apex Court. The Apex Court
dismissed the SLP as there are no observations by the District Forum against the advocates that there was
any negligence on the part of the advocates in prosecuting and/or conducting the complaints.

the Apex Court has held in clear terms that if the advocate/ chartered accountant is not found guilty of negligence, he
could not be prosecuted under the Consumer Protection  Act. On the contrary, if there is deficiency in service like non
appearance, abstaining from court, non filing of replies, not arguing the matter or any such act which is detrimental to
the interest of the client, the advocate/CA can be held be held liable for compensation under the Consumer
Protection Act.