Banks Can't Ask Panel Lawyers To Pay Court Fees From Their Own Pockets And Recover Later: Bar Council Of Punjab & Haryana

The Privilege Committee of the Bar Council of Punjab & Haryana has summoned the Chairpersons of HDFC, ICICI, and Axis Banks for allegedly asking their panel lawyers to pay the court fees for filing cases in the Debt Recovery Tribunal, Chandigarh.

The fees runs into lakhs and the banks are said to reimburse the same only after months, it noted.

A complaint was made to the Council by the the Debt Recovery Tribunal (DRT) Bar Association, Chandigarh requesting to take action against the Banks to stop "un-ethical practice."

The DRT Bar Association alleges that the court fee is excessively high, running into lakhs, which ordinary lawyers cannot afford to pay. They have further stated that the Banks or its officers have no power to ask their empaneled advocates to pay the court fee from their own pocket for filing the cases in DRT, Chandigarh.

It is also the case of the DRT Bar Association that this practice is not only un-ethical but also against the Privileges Rights and Duties of the Advocates provided under the Advocates Act, 1961 and it violates their Rights and Duties and privileges as enshrined under BCI Rules. 

The Privilege Committee comprising Chairman Lekh Raj Sharma and Members Raja Gautama and Karanjit Singh opined that "Prima facie it appears that this kind of the practice if it is prevalent is certainly in violation of the provision of the Advocate Act 1961, particularly Section 30, against Privileges Rights and Duties of the Advocate and also against the interest of the common Advocates particularly young Advocates."

This practice is un-ethical and it will create monopoly of the professional work/legal work in the hands of the few wealthy Advocates which will further eliminate the talent of the common Advocates, it added.

In the light of the above, the Committee summoned the Chairperson's of HDFC, ICIC and Axis Bank through duly authorised representative at the Bar Council of Punjab & Haryana.

"Non-cooperation of the order will lead to inference that un-ethical practice is going on and will be an admission" on their part and further action will be taken in their absence, in accordance with law, said the Committee.

Click here to read/download the letter