BCI Proposes Monthly Stipend for Junior Lawyers: Rs 20K in Cities, Rs 15K in Rural Areas

By Legal Wires 5 Minutes Read

The Bar Council of India (BCI) has taken a significant step by issuing a circular recommending that junior advocates be provided with a minimum monthly stipend of Rs 20,000 in urban areas and Rs 15,000 in rural regions. This recommendation comes after a directive from the Delhi High Court on July 25, urging the BCI to make a decision on the financial support for junior lawyers. The BCI recognizes the challenges faced by young advocates in the initial years of their practice, but notes that the guideline cannot be enforced universally due to varying financial situations of advocates across the country.

Key Highlights:

• Recommendation for Junior Advocates:
  The BCI’s circular suggests a minimum monthly stipend of Rs 20,000 for junior advocates working in urban areas, while those practicing in rural areas should receive a minimum of Rs 15,000. This stipend is to be provided for at least three years from the date the junior advocate is engaged.
• Non-mandatory Implementation:
  Despite issuing the recommendation, the BCI clarified that the stipend guideline cannot be made mandatory for all advocates and firms due to differences in financial capacities. The BCI acknowledged that not all senior advocates, law firms, or practitioners have the resources to offer the stipulated stipend, particularly those in smaller towns or practicing in less lucrative areas of law.
• Encouragement for Compliance:
  The BCI has encouraged Senior Advocates, Advocates, and law firms to comply with the guideline “to the best of their ability” while recognizing that non-compliance due to financial constraints should not be seen as a lack of responsibility.
• Regional Financial Disparities:
  Advocates practicing in metropolitan areas often have higher earning potential due to access to high-profile clients and corporate work. In contrast, those in smaller towns or rural areas may have fewer opportunities, resulting in lower-paying cases. The BCI highlighted this disparity to explain why the guidelines could not be enforced uniformly across the country.
• Legal Sector Variations:
  Advocates specializing in sectors such as corporate law, intellectual property, and tax law typically have greater financial resources. However, those practicing in civil law, criminal law, or public interest litigation may experience more irregular and lower earnings.
• Engagement Formalization:
  The BCI recommended that senior advocates provide junior advocates with a formal letter of engagementoutlining the terms of the stipend, the duration of engagement, and the scope of mentorship offered.
• Grievance Redressal Mechanism:
  Junior advocates who face issues related to the stipend or other engagement grievances can file complaints with their respective state bar councils. The BCI emphasized that complaints involving genuine financial constraints from senior advocates will be handled with flexibility and consideration.
• Monitoring & Review Committee:
  The BCI announced plans to establish a committee to periodically review the implementation of the stipend guidelines. This committee will adjust the stipend amounts based on feedback and changing economic conditions.
• Reference to Madras High Court Directive:
  The circular referenced the Madras High Court’s directive from July 2024, which mandated that senior advocates pay junior advocates a minimum monthly stipend of Rs 20,000 or Rs 15,000, depending on whether they are based in urban or rural areas.

Click here to read the Circular.

Legal Wires

Team @LegalWires