Financial Distress Of Advocates Amid COVID-19: Karnataka HC Asks State To Decide On Bar Association's Plea For Loans

The Karnataka High Court has directed the state government to consider and take a decision by August 19, on a representation made by the Belgavi Bar Association, seeking that a loan of upto Rs 5 lakh be extended to members of the bar who are in financial distress, due to limited functioning of courts.

A division bench of Chief Justice Abhay Oka and Justice Ashok S Kinagi said "The state government will have to take appropriate decision on the representation made by members of the Belgavi Bar Association, by treating it as representation made to the state government on behalf of members of the Bar Association for the entire state."

The Bar association had sent the letter on the administrative side to the Chief Justice, stating that they are not asking for any 'Charity' but a scheme to be evolved for extending the loan to the members.

The court which had earlier refused to entertain a similar petition, referred to the increase in the number of covid-19 positive cases across the state as the reason for directing the state to consider the representation. "The present situation is such that in near future it will not be possible for courts to restore normal functioning," the bench said.

The bench added "In the last one month the number of cases have multiplied, due to said reason it is difficult for courts to restore normal functioning. A judicial notice will have to be taken of the fact that a large number of court employees have tested positive and a large number of them have to undergo quarantine. At the Principal Seat in Bengaluru, 45 staff have tested positive, test results of many staff members are awaited. Many of them are forced to undergo quarantine."

Meanwhile, the Vice President of Advocates Bar Association at High Court bench Dharwad, Gangadhar Hoskeri, informed the court that an amount of Rs 25,000 is collected by the association from senior advocates of the bar association for the advocate's clerk, who are in distress. The counsel for the clerks association said around 40 members are badly in need of financial assistance.

To which the bench said the amount is too low and it is unbelievable that senior members of the Bar Association only donated an amount of Rs 25,000. It observed "As far as Bengaluru Bar Association was concerned, senior members of the Bar contributed substantial amounts and help of Rs 5,000 is extended to clerks. We hope and trust that senior members of the Bar at dharwad will follow the example set by senior members of the Bar at Bengaluru."

During the hearing the state government clarified that the amount of Rs 5 crore released by it to the Karnataka State Bar Council, is only for the benefit of advocates who are in distress and the government order does not mention any benefit out of the said amount to be extended to Advocate's clerk.

Following which the bench said "By releasing an amount of Rs 5 crore, the state has accepted the need to render financial assistance to members of the Bar. By that logic the state must also sympathetically consider the case of advocate clerks. Once the state has accepted that many members of the Bar are in distress there will not be difficulty in accepting that even advocate's clerks are in distress. Thus we direct the state government to take appropriate decisions on the question of releasing appropriate amounts for the benefit of advocates clerks, within two weeks from today."

The court has also directed the State government to consider the representation made to it by the Advocate Association at Dharwad, seeking financial assistance.

The Karnataka State Bar Council has been directed to place on record the following details on the next date of hearing.

#How does it propose to distribute the amount of Rs 5 crore released by the state government?

#Whether any scheme is evolved by KSBC, laying down qualifications for providing financial assistance for advocates by using the amount out of Rs 5crore sanctioned by the state government.

#Whether KSBC proposes to distribute the amount to Bar Associations on a pro-rata basis or undertake exercise to give help to individual advocates.

The directions were given during the hearing of a petition filed by the Advocates Clerks Association seeking financial assistance. The petition will be heard on August 20.