Ashurst has entered into a best-friends arrangement with Mumbai firm Indian Law Partners (ILP).

The non-exclusive tie-up will see the two firms refer work to each other on a preferential basis.

ILP, which was created earlier this year by former DSK Legal partners Gopika Pant and Piyoosh Gupta, also houses one counsel and 10 associates.

Pant, who set up a firm also called ILP in 1999, which merged with DSK in 2004, specialises in Indian corporate and commercial law, including cross border commercial transactions, private equity investments and acquisitions.

Gupta is also a corporate and commercial lawyer, with a broad practice covering infrastructure, acquisitions, real estate, franchising and retail and employment law.

The referral agreement comes a little more than a year after Ashurst was forced to close its liaison office in Delhi after a long-running case in which the Bombay High Court ruled against the practice of law by foreign firms in India.

Ashurst India practice head Richard Gubbins commented: "Gopika Pant and Piyoosh Gupta are both excellent lawyers. We have worked together on many matters over the years and we share a number of mutual clients. We very much look forward to continuing to work alongside one another whenever we can."

Ashurst's recent deals in India include advising on Coal India's $3.4bn IPO (£2.1bn) and advising Oil India Limited in relation to its $560m (£347m) Indian IPO and global offering on the BSE.

Ashurst's liaison office was initially set up in 1994. Ashurst, Chadbourne & Parke and White & Case all had to shut down their liaison offices as a result of the case.