The Supreme Court on Tuesday directed the Bar Council of India (BCI) to establish a National Legal Academy for advocates on the lines of the National Judicial Academy to strengthen institutional training, professional standards and continue legal education for lawyers across the country.
The Bench of Justice PS Narasimha and Justice Alok Aradhe observed that the legal profession required a more robust institutional framework for capacity building, professional discipline and lifelong legal learning. The Court ordered the BCI to undertake a performance audit of the effectiveness of its disciplinary mechanism and institutionalise a culture of continuous professional development for advocates.
The directions were issued while deciding a petition challenging the decision of the Indian Banks’ Association to place an advocate on its caution list after Canara Bank removed him from its panel of empanelled lawyers over an allegedly incorrect legal opinion.
Examining the scope of professional regulation of advocates, the Court held that an allegation of negligence by itself could not legally justify placing a lawyer on a public caution list. It further ruled that such a public declaration adversely affecting an advocate’s professional reputation was legally unsustainable.
At the same time, the Bench clarified that banks and other financial institutions retain the contractual and administrative discretion to appoint or discontinue advocates from their legal panels. However, it held that such decisions cannot be accompanied by any public notification, declaration or publication that effectively blacklists or damages the professional standing of the advocate concerned.
It further ruled that issues relating to professional misconduct, disciplinary proceedings and ethical violations by advocates fall exclusively within the statutory jurisdiction of the Bar Council of India and other competent regulatory bodies constituted under the law. It observed that disciplinary control over advocates cannot be exercised by banks or other private institutions through public caution lists or similar measures.
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