Law is continuously evolving. Statutes are amended, regulatory frameworks become increasingly specialised, constitutional doctrines develop through judicial interpretation, and emerging technologies transform litigation, legal research, evidence, commercial transactions, and court administration.
In such a rapidly changing legal environment, competence cannot be treated as something permanently acquired upon obtaining a law degree or enrolling as an advocate. The ability to practise law effectively requires continuous learning, adaptation, and improvement throughout an advocate’s career.
The Hon’ble Supreme Court directed the Bar Council of India to initiate and institutionalise Continuing Legal Education (CLE) and suggested that serious consideration be given to establishing a full-time National Legal Academy (NLA) dedicated to the continuing education, training, and capacity building of advocates.
“Despite frequent references to the Bar and Bench as the “two wheels of the chariot of justice,” the Bar is seldom called upon to share responsibility for reducing delays and improving efficiency. A paradigm shift is necessary,” observed the Supreme Court.
The significant observations came in Ajay Vijh v. Indian Banks Association & Ors., 2026 INSC 670, decided by a Bench comprising Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe.
Synopsis
- Background of the Case
- Advocate’s Inclusion in the IBA Caution List
- Professional Negligence Distinguished from Fraud
- Caution List Cannot Operate as a Disciplinary Mechanism
- Bar Councils’ Exclusive Disciplinary Jurisdiction
- Need for Institutionalised Continuing Legal Education
- Structured Learning Beyond Seminars and Conferences
- Proposal for a National Legal Academy
- Institutional Design and Professional Accountability
- BCI Directed to Develop the Proposal
- Outcome of the Case
- Broader Legal and Institutional Impact
Background of the Case
The appellant, Ajay Vijh, was an advocate who had been practising since his enrolment in 1998 and had served as panel counsel for several banks and financial institutions. He was empanelled with Canara Bank and rendered legal opinions concerning properties offered as security for banking transactions.
The dispute arose from a legal opinion furnished by the appellant in 2015 regarding immovable property offered as collateral for a credit facility of Rs. 2 crore.
The Bank subsequently alleged that the appellant had failed to identify earlier sale transactions relating to a portion of the property. According to the Bank, the omission exposed it to financial risk.
The appellant was called upon to explain. He contended that his legal opinion had been furnished after examining the records available with the Sub-Registrar and that the disputed transactions were not discernible from the records available at the relevant time.
Despite the explanation, the Bank removed the appellant from its panel of advocates on the ground of negligence in the verification of title.
The matter did not end with de-empanelment. The Bank forwarded the appellant’s name to the Indian Banks’ Association (IBA) for inclusion in its Caution List.
Consequently, the appellant’s name was included in a list titled “Third Party Entities Involved in Fraud”, accompanied by remarks alleging that he had given a wrong legal opinion and had been negligent in searching, thereby exposing the Bank to loss and financial risk.
The appellant challenged the action before the Allahabad High Court. The High Court dismissed the writ petition on the ground that the IBA was not “State” within the meaning of Article 12 of the Constitution. The matter eventually reached the Supreme Court.
Caution List Cannot Become an Alternative Disciplinary Mechanism
The Supreme Court held that the Caution List maintained under RBI directions is intended to alert banks about third-party entities and professionals involved in fraudulent transactions. It cannot be extended to cases involving mere professional negligence or an erroneous legal opinion.
The Court distinguished fraud, which involves dishonest intention or deliberate wrongdoing, from professional errors committed without any fraudulent intent. Since the allegation against the appellant concerned only negligence in rendering a title verification opinion, his inclusion in the Caution List was legally unsustainable.
While banks may remove advocates from their panels if dissatisfied with their services, they cannot circulate adverse findings about an advocate’s professional competence or integrity across the banking sector. Such action effectively amounts to professional blacklisting and creates a parallel disciplinary mechanism outside the framework of the Advocates Act, 1961.
Bar Councils Have Exclusive Disciplinary Jurisdiction Over Advocates
The Supreme Court reaffirmed that the legal profession is governed by a specialised system of self-regulation under the Advocates Act, 1961. Since advocates are officers of the court and integral to the administration of justice, allegations of professional misconduct, negligence, or incompetence must be examined exclusively by the State Bar Councils and the Bar Council of India under Sections 35 and 36 of the Act.
If a bank believes that an advocate has committed professional misconduct, it may approach the competent State Bar Council. It cannot bypass the statutory disciplinary mechanism and impose consequences amounting to professional blacklisting. Accordingly, the Court directed the removal of the appellant’s name from the Caution List.
Continuing Legal Education Must Become an Institutional Commitment
The Supreme Court emphasised that enrolment at the Bar should mark the beginning, rather than the end, of an advocate’s professional learning. Since laws, technology, professional standards, and societal expectations continuously evolve, advocates must regularly update their knowledge and skills.
Continuing Legal Education must therefore become an institutional commitment aimed at strengthening legal knowledge, advocacy skills, professional ethics, technological competence, and the ability of advocates to effectively contribute to the administration of justice.
Need to Move Beyond Seminars Towards Continuous Professional Learning
One of the strongest aspects of the Supreme Court’s observations concerns the distinction between occasional professional programmes and genuine continuing education.
The legal profession regularly organises conferences, seminars, workshops, lectures, and commemorative events. While such programmes may contribute to intellectual discussion, they cannot substitute for a structured system of professional learning.
The Court cautioned that episodic seminars and conferences must give way to serious and committed learning.
National Legal Academy Must Not Become Another Ceremonial Institution
The success of the proposed National Legal Academy would depend upon its institutional design. Creating another building, administrative structure, or occasional conference venue would not achieve the objectives identified by the Supreme Court.
The Academy must become a genuine centre of professional learning. Its programmes should be practical, accessible, professionally relevant, and regularly updated.
Experienced advocates, judges, academicians, technology specialists, professional trainers, and experts from emerging fields of law could contribute to curriculum development and training.
Participation of younger advocates would also be essential because any institution designed for the future of the legal profession must understand the challenges confronting those entering practice today. Professional education must produce improvements in competence, ethical awareness, advocacy skills, technological preparedness, and administration of justice.
Without clear objectives and institutional accountability, the proposed Academy could become another formal structure without meaningful impact.
BCI Asked to Develop the Proposal Through Institutional Consultation
The Supreme Court has directed the Bar Council of India to constitute a team consisting of senior and junior advocates along with experts experienced in establishing academic institutions. The purpose of this team is to consider, discuss, and develop the proposal for creating a National Legal Academy. The direction recognises that professional reform cannot be designed exclusively from the top.
Senior members of the Bar possess institutional experience and professional knowledge. Junior advocates understand contemporary challenges concerning entry into practice, mentorship, technology, financial sustainability, and access to professional opportunities. Experts in academic institution-building can contribute knowledge concerning governance, curriculum design, infrastructure, administration, assessment, and long-term institutional development.
Bringing these perspectives together could help create an Academy suited to the actual requirements of the Indian legal profession.
Outcome of the Case
The Supreme Court allowed the appeal and set aside the Allahabad High Court judgment. It declared the inclusion of the appellant’s name in the IBA Caution List impermissible, illegal and without jurisdiction, and directed the respondents to remove his name from the list immediately.
The matter was directed to be listed on 31 August 2026 for further consideration of the institutionalisation of Continuing Legal Education and the proposal to establish a National Legal Academy.
Broader Legal and Institutional Impact
The Supreme Court’s intervention has opened a larger conversation concerning the meaning of professional competence. The right to practise law carries responsibilities extending throughout an advocate’s career.
Legal knowledge acquired at university cannot remain sufficient indefinitely. Professional experience alone cannot guarantee familiarity with emerging laws, technologies, ethical challenges, and changing institutional requirements.
A profession committed to self-regulation must also be committed to self-improvement. Continuing Legal Education provides a framework through which professional independence can be strengthened by professional competence.
A National Legal Academy could provide the institutional foundation necessary to transform continuing education from an occasional activity into a permanent culture of learning.
The proposal also provides an opportunity to rethink the relationship between legal education, professional regulation, mentorship, technological development, and judicial reform.
India does not merely require more advocates. It requires advocates who remain professionally equipped throughout their careers to respond to changing laws, technologies, institutions, and societal expectations.
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