Are In-House Counsel Entitled To Attorney-Client Privilege? Supreme Court Answers

The Supreme Court clarified that communications between in-house counsel and their employers do not enjoy the same statutory protection under Section 132 of the Bharatiya Sakshya Adhiniyam as those between advocates and their clients. The Court explained that the privilege attaches only to communications made in a professional legal capacity by advocates enrolled under the Advocates Act. Since in-house counsels are employees and not independent legal practitioners, their correspondence with management cannot claim confidentiality under the same statutory privilege. The ruling has major implications for corporate governance, compliance, and internal investigations, urging companies to carefully demarcate legal advice rendered by external counsel. It underscores that confidentiality of in-house counsel’s communication is a contractual, not statutory, protection, impacting document disclosure norms during enforcement or litigation proceedings.