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Hi, I currently work with one of the Amarchand firms in their disputes team. I have 1 year PQE and I have been looking to give few years' time to core litigation practice and work on developing my own brand to become an arguing counsel in my hometown. Let's just say I have proximity to Delhi and two HC benches, some tribunals at my exposure. To start off, I have been wondering if I should join a govt counsel such as AAG's office/ litigation boutique law firm or an independent senior counsel.

Also, is it a very bad idea? What factors should I be considering so that this doesn't become a foolish move? Thanks.
Seedhe bolo na Alld/Lucknow se ho. Delhi ki practice ghanta kaam nahi ayegi in dono jagah pe. Amarchand chhodo and kisi senior ka chambers join karlo in cities mein if they are your hometown.
You probably know this. But still have to say this.. Forget money for at least initial 2 -3 years if you are in core Litigation. The 1 lakh plus salary that you got in amarchand, you will not see here.

In case money is not a big issue, I would still suggest you find some Senior Lawyers or boutique litigation law firms that pay a decent amount of money. At least for your basic needs + a little quality of life.

I suggest you stick to SAM for 3-4 years and then eventually move to some litigation-heavy law firm (such as Karanjawala, Agrawal Law associates) in a senior position. Also, try to be under a person who has cleared the AOR exam. Will help you with the experience requirement in case you want to give AOR exam in the future.

Alternatively, after 6-7 years at SAM, you will probably get to deal with clients directly. Make a good repo with them. Who knows you might be able to poach them when you make your own firm! ;)
Yes, I do understand the financial side of such a switch. However, I feel if I spend 6-7 years, won't that be too late to start in the core litigation setup? Would you think even 2-3 years more makes sense before the switch? One thing that has come out of the discussion is that leaving right away with just 1 PQE makes less sense as compared to if I leave after considerable experience in handling matters, filings, briefings etc.
Your work experience at a Tier 1 firm will help you in more than one way.

1 - generally identify the nature of the majority of cases filed in your home town.
2- identify the accessible tribunals from your hometown.

For (1) above:

3- Speak with lawyers from your home town and the leading lawyers they brief in Delhi.

The idea should be to learn, as much as you can, from the Tier 1 firm's commercial matters experience including arbitration, writs and commercial matters. This will give you a good trial experience. You could spend another year to see a life cycle of at least 1 dispute.

With 2 or 2.5 PQE, consider joining a Delhi counsel, not necessarily a senior, generally briefed by your hometown lawyers. This will help you build goodwill, some familiarity in the relevant circle and relevant work experience in the nature of cases most common in your home town. Spend 2 or 2.5 years and then take a call.

No thought is stupid, Just think through.