CLINICAL COURSE‐I: PROFESSIONAL ETHICS AND PROFESSIONAL

ACCOUNTING SYSTEM

Unit-I legal profession, responsibilities, conduct, privileges, and the

Advocates Act, 1961

⚖️1. The Legal Profession and Its Responsibilities

The legal profession is considered a noble profession that upholds justice

and protects rights. Lawyers act as intermediaries between the public and
the judiciary.

Key Responsibilities of Lawyers:

1. Duty to Court: Maintain decorum, uphold justice, and avoid

misleading the court (D.P. Chadha v. Triyugi Narain Mishra, 2001).

2. Duty to Client: Act diligently, maintain confidentiality (P.D. Gupta v.

Ram Murti, 1997).

3. Duty to Opponent: Fair dealing without harassment (Senior Advocate

Harish Salve's approach in Supreme Court cases).

4. Duty to Society: Promote justice and protect rights (Bar Council of

Maharashtra v. M.V. Dabholkar, 1976).

5. Duty to Self: Maintain integrity and continuous legal education.

📚 2. The Equipment of the Lawyer

A lawyer requires a combination of knowledge, skills, and ethical values

to practice effectively.

A. Essential Equipment for Lawyers:

Skill/Attribute Description Example/Case Law

Legal Mastery of statutes, case V.C. Rangadurai v. D. Gopalan

Knowledge laws, and procedures. (1979).

Analytical Critical thinking and Minerva Mills v. Union of India

Ability problem-solving. (1980).
Skill/Attribute Description Example/Case Law

Communication Clear oral and written

Effective arguments in court.
Skills expression.

Honesty, integrity, and Supreme Court Bar Association

Ethical Conduct
respect for the profession. v. Union of India (1998).

Ability to present cases G. Narayanaswami v. G.

Advocacy Skills
persuasively. Pannerselvam (1972).

3. Conduct in Court

Lawyers must maintain discipline and decorum in the courtroom.

Key Principles of Court Conduct:

1. Respect the Court: Address the bench respectfully (In re: Arundhati
Roy, 2002).

2. Fair Argument: Present facts without distortion (S.J. Chaudhary v.

State of Delhi, 1984).

3. Punctuality and Preparedness: Arrive on time with complete case

materials.

4. No Personal Attacks: Avoid abusive language or personal comments

(Lalit Mohan Das v. Advocate-General, Orissa, 1957).

5. Follow Dress Code: Black coat, white shirt, and band (Bar Council
Rules).

🤝 4. Professional Conduct in General

Professional conduct extends beyond courtrooms, emphasizing integrity,

confidentiality, and accountability.

Key Aspects of Professional Conduct:

1. Confidentiality: Maintain client secrets (Ram Jethmalani's approach

in Harshad Mehta case).

2. Conflict of Interest: Avoid representing opposing parties (D.L.F.

Housing v. Sarup Singh, 1971).
 3. No Misuse of Position: Avoid unfair influence (Shiv Narain Jafa v.
UOI, 1972).

4. Fair Fees: Reasonable fees without exploitation (Bar Council of India

v. A.K. Balaji, 2018).

5. No Advertisement: Prohibition of self-promotion under Bar Council

Rules.

🎓 5. Privileges of a Lawyer

Lawyers enjoy certain privileges and immunities to ensure independent

practice and protection while discharging duties.

Key Privileges:

Privilege Description Relevant Case Law

Right to Harish Uppal v. Union of

Present cases before courts.
Audience India (2003).

Client communications are Balram Singh v. State of

Confidentiality
privileged. Punjab (1987).

No arrest during court

Freedom from State of Maharashtra v.
attendance (except for serious
Arrest N.S. Kothari (2004).
crimes).

Bar Council of India v.

Right to Practicing across India under
Bonnie Foi Law College
Practice the Advocates Act.
(2003).

Freedom from Protection for fair arguments R. v. Metropolitian Police

Defamation made in court. Commissioner (1968).

📜 6. Salient Features of the Advocates Act, 1961

The Advocates Act, 1961, regulates the legal profession, ensuring ethical
standards and uniformity across India.

Key Provisions:
Section Provision Description

Section Advocate means a person enrolled

Definition of Advocate
2 under the Act.

Section Regulates advocates at the state

State Bar Council
6 level.

Section Governs the legal profession

Bar Council of India (BCI)
7 nationwide.

Section Senior Advocates and Classification based on merit and

16 Advocates experience.

Section Conditions for enrollment in the

Enrollment of Advocates
24 Bar.

Section
Right to Practice Advocates alone can practice law.
29

Section Disciplinary actions for unethical

Punishment for Misconduct
35 conduct.

Section Bar Council of India’s Rule- BCI can frame rules for professional
49 Making Power conduct.

⚖️7. Important Case Laws on Professional Ethics

1. Bar Council of Maharashtra v. M.V. Dabholkar (1976): Advocates

must uphold ethical standards.

2. V.C. Rangadurai v. D. Gopalan (1979): Professional misconduct

warrants strict action.

3. R.K. Anand v. Registrar, Delhi HC (2009): Advocates engaging in

unfair practices face contempt.

4. Supreme Court Bar Association v. Union of India (1998): Supreme

Court cannot debar advocates but can recommend action.

5. Harish Uppal v. Union of India (2003): Lawyers cannot go on strike.

🌟 8. Conclusion

 The legal profession demands integrity, competence, and

accountability.

 Lawyers must balance duties to the client, court, and society,

ensuring justice while adhering to ethical norms.

 The Advocates Act, 1961, ensures uniformity, regulates conduct, and

provides privileges for effective practice.
UNIT 2 : Duty to the Court, Profession, Opponent, Client, Self, Public,
and the State.

⚖️1. Duty to the Court

An advocate serves as an officer of the court, ensuring that justice is

administered fairly and ethically.

Key
Description Relevant Case Law
Responsibilities

Show utmost respect and In re: Arundhati Roy (2002):

Respect for Court
courtesy to judges. Contempt case.

No Misleading the Present facts honestly D.P. Chadha v. Triyugi Narain

Court without suppression. Mishra (2001).

Avoid exaggerated claims S.J. Chaudhary v. State of

Fair Argument
or false evidence. Delhi (1984).

Punctuality and Arrive on time with Advocate-on-Record v. UOI

Preparedness proper case preparation. (1993).

Avoid private C. Ravichandran Iyer v.

No Influence on
communication with Justice A.M. Bhattacharjee
Judges
judges. (1995).

📜 2. Duty to the Profession

Lawyers must uphold the dignity and honor of the legal profession,
maintaining ethical standards in practice.

Key
Description Relevant Case Law
Responsibilities

Practice with honesty, V.C. Rangadurai v. D.

Maintain Integrity
without misrepresentation. Gopalan (1979).

Avoid Undue No self-promotion under BCI Bar Council of India v.

Advertisement Rules. A.K. Balaji (2018).

Continuous Stay updated with legal Maharashtra State Judicial

Key
Description Relevant Case Law
Responsibilities

Learning developments. Academy guidelines.

No Professional Avoid acts undermining the Supreme Court Bar

Misconduct profession’s dignity. Association v. UOI (1998).

🤝 3. Duty to the Opponent

Even while representing clients, advocates must treat the opponent with
fairness and respect.

Key
Description Relevant Case Law
Responsibilities

Avoid harassment or false Senior Advocate P.

Fair Play
accusations. Chidambaram's approach.

Courtesy and Address opponents R. v. Metropolitian Police

Civility respectfully. Commissioner (1968).

Avoid Misleading No delaying strategies or R.K. Anand v. Registrar, Delhi

Tactics suppression of facts. HC (2009).

📝 4. Duty to the Client

An advocate’s primary duty is to serve the client diligently and

confidentially, ensuring the best possible legal representation.

Key
Description Relevant Case Law
Responsibilities

Competent Represent clients skillfully Ram Jethmalani's defense in

Representation and diligently. Harshad Mehta case.

Balram Singh v. State of

Confidentiality Protect client secrets.
Punjab (1987).

Avoid Conflict of D.L.F. Housing v. Sarup Singh

No dual representation.
Interest (1971).

Reasonable Fees Charge fair and Bar Council of India v. Bonnie

Key
Description Relevant Case Law
Responsibilities

transparent fees. Foi Law College (2003).

Proper Keep clients informed P.D. Gupta v. Ram Murti

Communication about case progress. (1997).

🧘 5. Duty to Self

Advocates must ensure personal growth, mental well-being, and

adherence to ethics while practicing law.

Key Responsibilities Description Relevant Case Law

Avoid unethical practices V.C. Rangadurai v. D.

Maintain Integrity
or shortcuts. Gopalan (1979).

Stay updated with new Advocate-on-Record v.

Continuous Education
laws and judgments. UOI (1993).

Balance Personal and Manage stress and B.C.I. Code of Ethics

Professional Life workload effectively. for Advocates.

🌍 6. Duty to the Public and the State

Advocates play a vital role in upholding the rule of law, promoting

justice, and safeguarding public interest.

Key
Description Relevant Case Law
Responsibilities

Act as a guardian of State of Maharashtra v.

Promote Justice
constitutional rights. N.S. Kothari (2004).

Provide free legal aid to

Pro Bono Services Suk Das v. UOI (1986).
the needy.

Refuse to represent
Avoid Supporting Bar Council of Maharashtra
clients promoting
Illegal Activities v. M.V. Dabholkar (1976).
illegality.

Contribute to Legal Support advancements in Lily Thomas v. UOI (2000).

Key
Description Relevant Case Law
Responsibilities

Reforms law and public policy.

📚 7. Relevant Provisions Under Advocates Act, 1961

Section Provision Description

Section
Eligibility for Enrollment Conditions for practicing law.
24

Section Only advocates can practice law

Right to Practice
29 in courts.

Section Punishment for Professional BCI can suspend or disbar

35 Misconduct unethical lawyers.

Section BCI can frame conduct rules for

BCI’s Rule-Making Power
49 advocates.

🌟 8. Conclusion

 Advocates must balance loyalty to clients, duty to the court, and

responsibility to society.

 Ethical practice ensures justice, fairness, and professional

integrity.

 Violations can lead to disciplinary actions, including suspension or

disbarment under the Advocates Act, 1961.
UNIT 3 : Contempt of Court Act, 1972, along with the landmark
judgments mentioned.

⚖️Contempt of Court Act, 1972

The Contempt of Court Act, 1972 was enacted to define, limit, and
regulate the powers of courts in punishing contempt. The objective is
to ensure the dignity and authority of the judiciary while balancing
freedom of speech and fair criticism.

Types of Contempt (Section 2)

Type Meaning Examples

Civil Willful disobedience to any judgment, Disobedience of a

Contempt order, or direction of the court. court's stay order.

Any act that scandalizes or lowers the Publishing false reports

Criminal
authority of the court, obstructs justice, or using abusive
Contempt
or prejudices a case. language.

📜 Key Provisions under the Act

Section Provision Description

Section Definition of
Defines civil and criminal contempt.
2 Contempt

Section Protects fair reporting unless it prejudices

Innocent Publication
3 the case.

Section Allows fair criticism of judicial acts without

Fair Criticism
4 contempt.

Section Fair Comment on Protects discussions in good faith on

5 Pending Cases pending cases.

Section Power of High Courts Empowers High Courts to punish

Section Provision Description

10 contempt of subordinate courts.

Section Punishment for Simple imprisonment up to 6 months

12 Contempt or fine up to ₹2,000, or both.

Section No Punishment if No punishment if the act was truthful and

13 Justification Exists served public interest.

Landmark Supreme Court Judgments

Here’s a breakdown of the important judgments you mentioned, along

with their impact:

Citation Judgment &

Case Name Key Issue
& Year Significance

Professional Advocates are officers of

In the matter of AIR 1956
misconduct of an the court and must
D, An Advocate SC 102
advocate. maintain court dignity.

Advocate's
Advocates can be
P. J. Ratnam v. D. AIR 1964 misconduct in
disqualified for unethical
Kanikaram SC 244 professional
practices.
dealings.

N. B. Mirza v. Bar Advocates must adhere

AIR 1972 Professional ethics
Council of to BCI rules to maintain
SC violation.
Maharashtra professional integrity.

Bar Council of Advocate's right to Advocates are subject to

AIR 1976
Maharashtra v. practice vs. disciplinary action for
SC 242
M.V. Dabholkar misconduct. professional misconduct.

Misuse of client’s Advocates hold fiduciary

V.C. Rangadurai v. AIR 1979
funds by an duties and must act in
D. Gopalan SC 201
advocate. clients' best interests.

Chandra Shekhar
Advocate’s Reiterated high
Soni v. Bar AIR 1983
misconduct in standards for
Council of SC 1012
handling a case. professional ethics.
Rajasthan
 Citation Judgment &
Case Name Key Issue
& Year Significance

Advocates can face

In Re: An AIR 1989 Professional contempt for
Advocate SC 245 misconduct. misconduct, even outside
court premises.

Court can punish

1995 Advocate’s
In Re: Vinay advocates for contempt
(Vol-I) IBR contemptuous
Chandra Mishra without separate
118 behavior in court.
proceedings.

Supreme Court Power to debar Bar Council, not the

AIR 1998
Bar Association v. advocates for court, has power to
SC 1895
UOI contempt. disbar advocates.

Advocates have no right

Ex-Capt. Harish AIR 2003 Right to strike by
to strike or boycott court
Uppal v. UOI SC 739 advocates.
proceedings.

🌟 Key Takeaways

1. Balancing Judicial Dignity and Freedom of Speech:

o Fair criticism is allowed, but scandalizing the court invites

contempt.

2. Protection Against Arbitrary Use:

o Sections 4, 5, and 13 protect individuals acting in good faith.

3. Punishment:

o Contempt can lead to imprisonment, fines, or both. However,

courts often prefer apologies over punishment if made
sincerely.

4. Advocates’ Conduct:

o Lawyers must maintain professional ethics and respect court

proceedings to avoid contempt charges.
UNIT 4 : Bar Council of India (BCI) plays a crucial role in regulating the
legal profession under the Advocates Act, 1961.

📜 1. Professional Conduct and Ethics

The Bar Council of India Rules, Part VI, emphasize ethical standards that
advocates must uphold.

Key Opinion Issue Addressed BCI’s View and Guidelines

Misleading the court or Advocates must present facts

Advocate’s Duty
submitting false honestly without suppression or
to the Court
evidence. distortion.

Promoting legal
No Advertisement Advocates cannot advertise
services via ads or
or Solicitation under Rule 36 of BCI Rules.
websites.

Advocates must withdraw if a

Conflict of Representing
conflict arises during
Interest conflicting parties.
representation.

Fees and Charging excessive or

Advocates cannot charge fees
Contingency contingency-based
contingent on case outcomes.
Agreements fees.

Relevant Case Law:

 Bar Council of India v. A.K. Balaji (2018): Reaffirmed the restriction on

foreign lawyers practicing in India.

⚖️2. Disciplinary Matters and Misconduct

The BCI handles complaints about professional misconduct under Section

35 of the Advocates Act, 1961.
Key Opinion Nature of Misconduct BCI’s View and Action

Advocates
Misuse of Advocates can face suspension or
misappropriating client
Client Funds disbarment.
money.

Rude Advocates showing

Such conduct amounts to
Behavior in disrespect to the
professional misconduct.
Court judiciary.

Strikes are unethical and

Strikes and Advocates abstaining
impermissible, as per Ex-Capt.
Boycotts from court work.
Harish Uppal v. UOI (2003).

Negligence Failing to appear or act Advocates must maintain

in Duty diligently. reasonable diligence and care.

Relevant Case Law:

 V.C. Rangadurai v. D. Gopalan (1979): Advocates hold a fiduciary

relationship with clients.

 R.K. Anand v. Registrar, Delhi HC (2009): Advocates engaging in

unethical behavior can face contempt and disciplinary action.

3. Rights and Privileges of Advocates

The BCI protects the rights and privileges of advocates while ensuring
they act within ethical boundaries.

Key Opinion Advocate’s Right BCI’s View and Protection

Practicing in courts Section 30 of the Advocates

Right to Practice
across India. Act ensures this right.

Representing clients
Right to Advocates cannot be prevented
without undue
Representation from representing clients.
interference.

Protection against Authorities must follow proper

Protection from
harassment by procedures while dealing with
Arbitrary Arrest
authorities. advocates.

Relevant Case Law:

  Supreme Court Bar Association v. UOI (1998): The court cannot
debar an advocate, only the Bar Council can take disciplinary
action.

 Dharam Pal v. Ramshri (1993): Advocates have the right to appear

before any court without restrictions.

📚 4. Opinions on Emerging Issues

The BCI has also issued opinions on contemporary issues like online legal
services, foreign law firms, and virtual courts.

Key Issue BCI’s Opinion

Virtual Court Hearings Advocates must maintain decorum, even in

(Post-COVID-19) virtual settings.

Foreign lawyers cannot practice law in India, per

Foreign Law Firms
BCI v. A.K. Balaji (2018).

Legal platforms can list advocates but cannot

Online Legal Platforms
promote or solicit clients.

🌟 5. Enforcement and Disciplinary Powers

 Section 35: BCI can punish advocates for misconduct through

suspension or disbarment.

 Section 36: The Disciplinary Committee of BCI hears appeals from

State Bar Councils.

 Section 38: Appeals from BCI's disciplinary orders lie with the
Supreme Court.

🚨 6. Conclusion: Balancing Rights and Responsibilities

The BCI’s opinions ensure that advocates maintain:

1. Professional Integrity: Honest dealings with courts, clients, and

peers.

2. Ethical Practice: Adhering to the Advocates Act and BCI Rules.

 3. Accountability: Disciplinary actions for violations.

4. Advocacy for Justice: Promoting access to justice while ensuring fair

representation.

UNIT 5 : Accountancy for Lawyers.

⚖️Accountancy for Lawyers: Overview

Lawyers, like other professionals, must maintain accurate financial

records to ensure:

1. Transparency in client transactions.

2. Accountability for client funds held in trust.

3. Compliance with Bar Council rules and tax laws.

4. Efficient management of office expenses and income.

📚 1. Need for Maintenance of Accounts

Why should lawyers maintain accounts?

 To track income and expenses from legal practice.

 To manage client funds (especially advance fees and settlements).

 For audit and tax compliance (under the Income Tax Act and GST).

 To avoid disputes with clients regarding fees or disbursements.

Relevant Rules:

 Bar Council of India (BCI) Rules, Part VI, Chapter II: Advocates
must maintain separate client accounts and avoid
misappropriation of client funds.

📝 2. Books of Accounts to be Maintained

Lawyers must maintain the following essential books of accounts:

Book of
Purpose Example Entries
Account

Records daily cash

Court fees, client advances,
Cash Book transactions, including receipts
office expenses.
and payments.

First entry book for non-cash Credit sales, adjusting

Journal
transactions. entries, bad debts.

Main account book, Separate ledgers for client

Ledger summarizing transactions under accounts, office expenses,
each head. etc.

Office rent ₹10,000 debit;

Trial Ensures debits = credits,
Income from fees ₹50,000
Balance preparing for final accounts.
credit.

Final Prepares the Profit & Loss Income from legal services,
Accounts Account and Balance Sheet. less expenses = Net Profit.

📖 3. Elementary Aspects of Bookkeeping

Bookkeeping refers to the systematic recording of financial

transactions.

Aspect Explanation Example

Recording daily Recording ₹5,000 court fee paid

Meaning
transactions systematically. by the client.

Ensure accuracy,
Tracking advances received for
Object accountability, and
future legal work.
transparency.

First book of entry, where Dr. Client Account ₹20,000; Cr.

Journal
transactions are recorded. Legal Fees Income ₹20,000.

Double-
Every transaction has equal Court fees paid: Dr. Expenses
Entry
debit and credit entries. ₹1,000; Cr. Cash ₹1,000.
System

Closing of Done at year-end to prepare Closing rent, salaries, and

Accounts final accounts. income accounts for profit
Aspect Explanation Example

calculation.

💰 4. Client's Accounts: Special Consideration

Bar Council Rules require lawyers to maintain a Client’s Account for

client funds:

1. Separate Bank Account: Client funds cannot be mixed with personal

funds.

2. Client Ledger: Each client has an individual ledger showing

receipts and disbursements.

3. Journal Proper: Used to record non-cash transactions related to

clients.

4. Settlement of Accounts: Once the case ends, funds must be settled

immediately.

Example:

 Advance received for case: Dr. Client Account ₹50,000; Cr. Client
Advance ₹50,000.

 Expenses paid for client (e.g., court fees ₹10,000): Dr. Client Expense
₹10,000; Cr. Cash ₹10,000.

 Balance refunded after case settlement: Dr. Client Advance ₹40,000;

Cr. Bank ₹40,000.

📊 5. Preparation of Financial Statements

At the end of the financial year, advocates must prepare:

1. Trial Balance: Ensures that debit = credit.

2. Profit & Loss Account:

o Income: Legal fees, consultation charges.

 o Expenses: Rent, salaries, stationery, court fees.

3. Balance Sheet:

o Assets: Bank balance, office equipment.

o Liabilities: Outstanding payments, client advances.

📐 6. Commercial Mathematics for Lawyers

Basic commercial mathematics helps lawyers calculate fees, settlements,

and interests.

Concept Application in Legal Practice

Simple Interest Calculating interest on client advances or late

(SI) payments.

Compound
Used for settlements involving multiple periods.
Interest (CI)

Calculating court fees, tax deductions, and

Percentage
professional fees.

Profit & Loss Calculating net profit from legal practice.

Example:

 Interest on ₹1,00,000 client advance at 6% p.a. for 1 year:

o SI = (P × R × T) / 100 = (1,00,000 × 6 × 1) / 100 = ₹6,000.

📑 7. Practical Example: Client Ledger (Simplified)

Debit Credit Balanc

Date Particulars
(₹) (₹) e (₹)

01/01/202 Advance ₹50,00

₹50,000
4 received 0
 Debit Credit Balanc
Date Particulars
(₹) (₹) e (₹)

05/01/202 ₹40,00
Court fees paid ₹10,000
4 0

10/01/202 Drafting ₹35,00

₹5,000
4 charges 0

20/01/202 Refund to
₹35,000 ₹0
4 client

🌟 8. Key Takeaways for Lawyers

1. Maintain separate books for office and client transactions.

2. Reconcile bank statements regularly with client ledgers.

3. Avoid mixing personal and client funds under BCI Rules.

4. Issue receipts for all transactions and keep detailed records.

5. Prepare final accounts annually for tax and audit purposes.