With more than 30 years of experience practising in both the Madras High Court and the Supreme Court, Arvind Datar is a prominent senior advocate (designated by the Madras High Court in 1999). We will discuss Mr. Arvind Datar as a case study in this article
Introduction
In the realm of tax, company and Constitutional matters in India, one name stands out as a symbol of excellence and authority— Mr. Arvind Datar. Renowned for his legal acumen, he has authored several highly regarded commentaries, including the
- Guide to Central Excise Law and Practice: With Accounting Practices
- Datar Commentary on the Constitution of India
- Nani Palkhivala The Courtroom Genius
- Essays And Reminiscences: A Festschrift In Honour Of Nani A. Palkhivala
- Guide To Central Excise – Law & Practice
- Guide To Central Excise – Law & Practice
Mr. Datar’s illustrious career has seen him argue before the Supreme Court in landmark cases, such as the Vodafone – Income Tax return case, National Tax Tribunal case, the SEBI- Sahara case, and the NJAC (appointment of judges) case.
In this exclusive interview, we delve into his early career, the challenges he faced, and his insights on building a successful legal practice.
Early Practice: His Journey to Tax Law
Since embarking on his independent legal career in 1980, Mr. Datar’s journey has been nothing short of remarkable. Initially aspiring to become a tax lawyer, he encountered challenges that shaped his early years. Civil litigation dominated his practice initially, but the turning point came with his book on central excise, significantly boosting his exposure in tax matters.
Reflecting on those early days, Mr. Datar shares, “The early years of independent practice didn’t go according to plan. Fortunately, I had a civil law background, so I was able to take up a large amount of civil work at the city civil and small causes courts and a few matters in the high court.”
Dealing with Financial Strain: Prioritize, Save, and Spend Wisely
Financial strain is a common challenge for budding lawyers, and Mr. Datar offers valuable advice on navigating this aspect of legal practice. He emphasizes the importance of regular writing, teaching law in various institutes, and living frugally to supplement income.
Verbatim Excerpt of Mr Datar’s Insights
‘I taught contracts and commercial law in the Institute of Cost and Works Accountants; general laws and company law in the Institute of company secretaries and taxation law at the Institute of chartered accountants. I travelled to Trichy on the weekends to teach taxation at the Bharathidasan Institute of Management. I used to take 32 lectures – approximately 6 lectures per weekend. I also taught at Natesan Cooperative training college and other institutes.
I bought my first car after 11 years of starting my practice. Initially, just travelling by bus wasn’t expensive. Strangely, initially, 50% of my income was paid to my stenographer but it was an investment – because of my obligation to pay him that money, I started writing more articles to earn the money.’
Don’t get into any loan commitments – never, never borrow money for any luxury or for your enjoyment. I believe that one should never eat up their capital in luxurious living – it’s important to have a nice nest egg. Whatever else you do must come out of your revenue/ interest income.’
The Biggest Struggle: Waiting for Work
Every legal career faces unique struggles, and for Mr. Datar, waiting for work proved to be a significant challenge. Despite having a civil law background, the initial period of securing substantial cases took longer than expected.
Verbatim Excerpt of Mr Datar’s Insights
‘I had decided at the beginning of my career to never solicit work or go to any client’s office. While I knew the basics of the profession, I did not know that it would take so much longer to get going.
Mr. T.N Sitaraman of the Indian Express, who briefed my senior, Mr. Ramamani on tax cases gave me a lot of the Express Group’s civil cases initially. There were others, like Mr. Rajaram, who was a criminal lawyer – he passed on his rent control cases to me, which brought in some income in the early stages.’
First Case and First Big Case: Foundations of a Legal Career
Mr. Datar’s journey includes memorable milestones, such as his first case – a small money recovery suit – and his first big case, a significant Bank of India suit against a fisheries export house. These cases not only marked professional achievements but also showcased the importance of mentorship and support.
Verbatim Excerpt of Mr Datar’s Insights
‘My first case was a small money recovery suit of an amount of Rs. 11,000 or 12,000 from a company in Madras. I was awaiting my results at the time. So, even before I enrolled myself, I studied the file and made notes. The moment my enrollment came through, I issued a legal notice and filed a suit. Fortunately, we succeeded and more work came my way.
I got my first big case thanks to my guru, Sri Ramamani. When I told him I was going to leave the office in 1984 to set up my own practice, I had no chamber, nothing. He was extremely kind – there was a very big Bank of India suit against a fisheries export house and in 1982, that suit was for Rs. 81 lakhs, which was a king’s ransom. Today, it would be worth at least Rs. 70-80 crores.
So, when I left, Mr. Ramamani told me to take that suit. My schedule fee, I still remember, was Rs. 49, 200/- and they paid me in 3 instalments. That suit really kept me going – I owe an eternal debt of gratitude to my senior for that – he need not have done it, he could have kept that suit for his firm, but I don’t know why he just felt that he should encourage me to set up my practice.’
Early Dilemmas and The Importance of Saying ‘No’
Dilemmas often arise for young lawyers, and Mr. Datar faced the choice between specialization and handling diverse cases. Looking back, he acknowledges that focusing more on taxation, constitutional law, and company law, and avoiding general civil work beyond a certain point, would have been a strategic decision.
Verbatim Excerpt of Mr Datar’s Insights
‘In the Madras High Court, the extent of specialisation was not as much as it was in Bombay, so a lawyer like me would do central excise, an arbitration, a company matter, appear before the Company Law Board and so on. However, looking back, maybe I should have stuck to taxation, constitutional and company law. I should have avoided general civil work beyond a particular point.
The most important thing that a young junior should remember is to learn the art of saying ‘no’ – not to take up a case out of sympathy or short-term temptation of fees because in the long run, it really takes away from your specialisation and pushes your long-term goals away.
There are many cases which I have spent hours and hours of time on and looking back, I think that if I had used that time to devote myself to taxation and constitutional law, I would have been better off.’
Motivation and Support: The Pillars of Success
Passion for the law and unwavering self-belief were Mr. Datar’s primary motivations during challenging times. His decision to forego a job, relying on his father’s support, reflects his commitment to his legal aspirations.
Verbatim Excerpt of Mr Datar’s Insights
‘I told my father that I would not take a job and if it came down to it, I would beg, but I would beg at the High Court building! I was confident that it was only a matter of time before I made it. I believed firmly that if I did not stray from the straight path, I would eventually succeed.’
On Writing and Building his Profile: Crafting Expertise through Words
Building a robust professional profile is crucial in the legal field, and Mr. Datar achieved this through relentless writing and speaking engagements. His decision to write a book on central excise after a major overhaul in 1986 and becoming the revising editor of Ramaiya on Company Law marked strategic moves that enhanced his expertise.
Verbatim Excerpt of Mr Datar’s Insights
‘I decided that if I had to make a mark for myself in the profession I must have a certain specialisation. I decided to write a book on central excise after the major transformation, with the new tariff and new MODVAT, since it was a relatively uncharted territory. I felt that it would be relatively easier to establish myself in a new field rather than established areas like income tax and company law.
I must also mention here that apart from central excise, I became the revising editor of Ramaiaya and it was my good luck because the Company Law Board had just started in 1991, so both central excise and CLB were new and I got a lot of work in both areas. Both were a result of my writing.
Clients would generally be reluctant to approach a newcomer and would prefer experienced senior practitioners in that field. The best way to build a profile is to specialise in a particular area, write books/ gain masteries. I also started speaking on the budget every year and conducting budget seminars through a management study centre. Many companies attended these lectures and a lot of work came my way as a result.’
Importance of Appearances: Visibility in the Legal Arena
Visibility is key in the legal profession, and Mr. Datar shares insights on the importance of appearances. Even during lean periods, he made a conscious effort to be seen in court, emphasizing that “out of sight is out of mind.”
Verbatim Excerpt of Mr Datar’s Insights
‘One thing I learnt was that you must be seen in court – out of sight is out of mind. So even when I didn’t have any work, I would put on my coat and gown and walk through the city civil court and high court: just walk around with one brief in my hand and then after about half an hour, go and sit in the library. Again after lunch, I would go around, so that everybody knew that I was still around.’
It’s kind of a chicken and egg situation – if you refuse a case that’s not in your specialisation, then you lose a court appearance. So if you want more court appearances, you have to take work that you may not want to do. That’s what happened to me when I started going more often to the Supreme Court – I kept taking matters because it resulted in more appearances and that gives you visibility. After a certain point, you are in a position to call the shots and say ‘I will not do this work’, because by then you’re guaranteed to be busy with enough work. In fact, sometimes, you have no option but to refuse work because you will do injustice and quality will fall by taking on too much work.’
On Networking and Attracting Clients: Expertise as the Magnet
Mr. Datar’s path to attracting clients differed from traditional networking approaches. Instead of joining social clubs and organizations, he relied on his writing and expertise to draw clients to him.
Verbatim Excerpt of Mr Datar’s Insights
‘The only way I could attract clients was through my writing. That’s why I had very few clients initially. Once my book got going, then I didn’t look back. Clients automatically came to me without any kind of networking or recommendation.
I am not really familiar with this concept of ‘networking’, I think it’s a newer concept. I feel the best way to attract clients is to build expertise since you presumably knew more than anyone else in your field. At the end of the day, a client may come to you out of friendship once or twice, but if you’re an expert, he’ll remain with you much longer.
Even with the profession, I never actively tried to build contacts, I used to just address seminars and stay focused on that. I also stayed away from any politics in the Bar, I was not in any association, clique or group. I just kept working all the time – I used to take lectures in the morning and in the evenings and on the weekends, along with addressing seminars.
So in a sense, I didn’t really have any time to build up a network amongst my professional colleagues. There were acquaintances and friends, but that was that. Whatever little time I had, I spent with my family. But I don’t think I suffered because of that – in fact, perhaps it was a blessing in disguise because I didn’t owe anything to anyone.’
Getting Clients to Take You Seriously: The Professional Distance
Maintaining a professional distance from clients is a philosophy Mr. Datar holds dear. He advises against cultivating friendships with clients, emphasizing the importance of being perceived as competent and maintaining a healthy relationship.
Verbatim Excerpt of Mr Datar’s Insights
‘It’s very difficult to maintain a client relationship with a friend – unnecessary expectations, not being able to charge your regular fees and other complications may arise and sometimes friendships may also be ruined by that.
I also maintained a policy of never socialising with my clients. Don’t be too friendly, too cozy with them because then they will take you for granted. Respect always comes from a distance. Ultimately, beyond a point, the client doesn’t really care: if they feel that you are slightly incompetent or you’re slackening, they’re just going to drop you like a hot potato and move on to another lawyer.
Be extremely good at your work, be an absolute master in your subject, and keep an arm’s length distance from your clients – that way you respect them and they also respect you and it’s a healthy relationship.’
On the ‘Ideal’ Client: A Collaborative Partnership
In Mr. Datar’s view, an ideal client is not merely one who pays fees promptly but also one who provides proper instructions and collaborates effectively. The client-lawyer relationship is most productive when built on mutual cooperation.
Verbatim Excerpt of Mr Datar’s Insights
‘An ideal client is one who pays the fees on time and gives you proper instructions. As important as fees, I think someone who works in tandem with you, gives you all the factual support and is completely cooperative to bring everything that is needed to make a perfect brief. You can only do your best when you get good support from the client.’
The Takeaway
Mr. Arvind Datar’s journey from the early struggles of independent practice to becoming a stalwart in Indian law is a testament to his resilience, strategic choices, and unwavering commitment.
His insights provide a roadmap for aspiring lawyers, emphasizing the importance of specialization, visibility, and maintaining a professional demeanour.
As we conclude this in-depth conversation, Mr. Datar’s story we hope that this interview acts as inspiration for those navigating the intricate path of legal practice in India.
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