Compression Through a Context Lens: Evaluating Adaptation, Quantization, and Distillation in Arabic Legal LLMs

Legal information in Bangladesh is inaccessible to most citizens. Statutory text is English-only, trained lawyers are concentrated in urban centres, and cloud-dependent AI fails where mobile connectivity is unreliable, a setting in which hallucinated legal text causes direct harm. The system addresses statutory interpretation only; queries that require judicial precedent or case-law reasoning fall outside its scope. We target the statutory access gap by compressing a 9-billion-parameter Gemma-2 teacher into a 2-billion-parameter student through two-phase progressive knowledge distillation. Phase 1 performs supervised fine-tuning on 9,429 quality-gated legal question-answer pairs (65% acceptance from 14,514 generated queries); Phase 2 minimises sparse Kullback-Leibler divergence against the teacher's top-50 per-token logits at temperature tau = 4.0, implemented via QLoRA (4-bit NF4, rank-32 LoRA adapters). Prior legal language models target general legal English; this system specialises in Bangladeshi statutory law. Every response is grounded through hybrid retrieval combining dense semantic search (60%) and BM25 (40%) across 36,029 statutory passages from the Bangladesh Constitution and national legislation. On a 50-query English benchmark, the distilled model reaches ROUGE-L 0.4715 and BERTScore F1 0.5679, a 103% ROUGE-L and 143% BERTScore gain over the retrieval-augmented undistilled baseline (ROUGE-L 0.2323, BERTScore 0.2340). The adapter quantises to 1.6 GB (GGUF Q4_K_M) and runs at 4-8 tokens per second on a Pixel 6 with no network access. Cross-lingual evaluation on 50 Bangla queries yields ROUGE-L 0.4083 and BERTScore 0.8133, showing effective retrieval from Bangla input against an English-only corpus. In a single-evaluator pilot, a practising lawyer rated 50 responses at a weighted mean of 4.16/5 (90% rated 4 or 5), supporting utility beyond text-overlap metrics.

Fine-tuning can improve legal question-answering accuracy without improving how models use law supplied in context. We study this distinction in bilingual Bangladeshi legal QA, where observed errors can arise from answer scoring, retrieval, or failure to use relevant law. We construct a hierarchy-preserving statutory corpus, 2,165 reviewed bilingual fine-tuning examples, and a 150-item supplied-law control. We evaluate six instruction-tuned models: Llama-3.2-1B, Llama-3.2-3B, Qwen3.5-0.8B, Qwen3.5-2B, Qwen3.5-4B, and Gemma-4-E2B, with three LoRA seeds per model. To separate effects, we combine constrained option-letter scoring, cyclic option rotation, and controlled removal of the governing provision. On 398 Bar Council outputs, an exact-line parser attributes an accuracy gain of 50.0% to the Qwen3.5-2B seed-42 adapter, whereas option scoring yields only $3.0\%$. For Gemma-4-E2B, the two scoring methods favor different systems. When the governing provision is guaranteed to be present, five of six reference models improve by $14.7\%-19.3\%$ under the four-order criterion. Removing that provision reduces accuracy by $8.0\%-15.3\%$ for models and by $13.8\%-14.9\%$ points for their adapters. However, difference-in differences estimates show no increase in reliance on the governing provision after fine-tuning. Results show that legal adaptation claims require separating scorer, retriever, and model effects. Our Code and data are available at https://anonymous.4open.science/r/bangladesh-legal-qa-11E3

The rapid proliferation of Large Language Models (LLMs) has revolutionized Natural Language Processing (NLP) but has simultaneously created a "resource divide." State-of-the-art legal intelligence systems typically rely on massive parameter counts (7B+) and cloud-based inference, rendering them inaccessible to practitioners in resource-constrained environments and posing significant data sovereignty risks. This paper introduces Quecto-V1, a domain-specific Small Language Model (SLM) engineered to democratize access to Indian legal intelligence. Built upon a custom configuration of the GPT-2 architecture (124 million parameters), Quecto-V1 was trained from scratch exclusively on a corpus of Indian statutes, including the Indian Penal Code (IPC), the Code of Criminal Procedure (CrPC), and the Constitution of India. Unlike generalist models, which prioritize broad world knowledge, our approach maximizes "lexical density" within the legal domain. Furthermore, we address the deployment bottleneck by applying post-training 8-bit quantization (GGUF format), compressing the model to a memory footprint of under 150 MB. Our empirical analysis demonstrates that Quecto-V1 achieves high fidelity in retrieving statutory definitions and penal provisions, outperforming general-purpose SLMs in domain-specific exact match tasks while running entirely offline on consumer-grade CPUs. We further present an ablation study showing that 8-bit quantization yields a 74% reduction in model size with less than 3.5% degradation in retrieval accuracy compared to full-precision baselines. These findings suggest that for specialized, high-stakes domains like law, domain-specific training coupled with aggressive quantization offers a viable, privacy-preserving alternative to monolithic cloud models.