State bar councils cannot charge exorbitant fees for enrolling lawyers, says SC

The Supreme Court on Tuesday, 30 July ruled that state bar councils cannot charge exorbitant fees for enrolling law graduates as lawyers as it perpetuates systemic discrimination against marginalised and economically weaker sections besides undermining their participation in the legal profession.

The levy of exorbitant fees ranging from around 15,000 to over Rs 40,000 by some state bar councils (SBCs) was "contrary to the principle of substantive equality", the top court held, adding the SBCs and the Bar Council of India (BCI) cannot "alter or modify" the fiscal policy laid down by Parliament.

A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra said the bar bodies are delegates of powers under the Advocates Act, 1961.

The bench said SBCs and the BCI cannot charge more than Rs 750 and Rs 125 for enrolling law graduates from general and the SC-ST categories, respectively.

"The SBCs cannot charge 'enrolment fees' beyond the express legal stipulation under Section 24(1)(f) as it currently stands," it held, adding the provision specifically lays down the fiscal pre-conditions subject to which an advocate can be enrolled on State rolls.

"The SBCs and the BCI cannot demand payment of fees other than the stipulated enrolment fee and stamp duty, if any, as a pre-condition to enrolment," it held.

Writing the 68-page judgment, the CJI said the decision of SBCs to charge fees and charges at the time of enrolment in excess of legal stipulation violated Article 14 (right to equality) and Article 19(1)(g) (right to practice a profession) of the Constitution.

The bench, however, said the decision will have "prospective effect" and SBCs were not required to refund the excess enrolment fees collected so far.

The bench linked the levy of exorbitant fees by various SBCs to the dignity of law graduates, especially belonging to SCs, STs and the EWS categories.

The bench said dignity is crucial to substantive equality. The dignity of an individual encompasses the right of the individual to develop their potential to the fullest. The right to pursue a profession of one's choice and earn livelihood is integral to the dignity of an individual, it said.

"Charging exorbitant enrolment fees and miscellaneous fees as a pre-condition for enrolment creates a barrier to entry into the legal profession. The levy of exorbitant fees as a pre-condition to enrolment serves to denigrate the dignity of those who face social and economic barriers in the advancement of their legal careers.

"This effectively perpetuates systemic discrimination against persons from marginalised and economically weaker sections by undermining their equal participation in the legal profession," it said.

It examined issues whether enrolment fees charged by the SBCs are in contravention of the provision and if the payment of other miscellaneous fees can be made a pre-condition for enrolment.

It said once advocates are enrolled, SBCs can charge fees for other services provided in accordance with the Advocates Act.

The verdict, which was reserved on 22 April, came on 10 pleas filed by some lawyers who claimed the SBCs were levying exorbitant enrolment fees, and the counter pleas of some SBCs.

It was alleged that the enrolment fee is Rs 42,100 in Odisha, Rs 25,000 in Gujarat, Rs 23,650 in Uttarakhand, Rs 21,460 in Jharkhand and Rs 20,050 in Kerala in comparison to the fees of Rs 750 and Rs 125 provided under Section 24 of the Advocates Act.

On April 10, the top court had issued notices to the Centre, the BCI and other SBCs on the pleas, saying they had raised a significant issue.

The pleas alleged that charging "exorbitant" enrolment fees violated the legal provision and the BCI must step in to ensure it was not done. It was said that such high fees effectively deny enrolment to young aspiring lawyers who do not have the necessary resources.