Home  /  Arbitration and Conciliation Act, 1996  /  Section 51

Section 51: Preservation of rights

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1996
Section 50 All 87 Sections Schedules (4th, 5th, 7th) Section 52

Legal Commentary & Landmark Judgments: Section 51

Section 51 of the Arbitration and Conciliation Act, 1996 contains a preservation clause, providing that nothing in Chapter I of Part II shall prejudice any rights which any person would have had of enforcing in India any award or of availing themselves of any award if this Chapter had not been enacted.

  • Preservation of Common Law Rights: Saves independent rights of enforcing foreign awards available under general law or bilateral treaties.
  • Equitable Estoppel & Defense: Preserves the right to use an un-enforced foreign award as an equitable defense or set-off in pending Indian proceedings.
  • Non-Derogation Principle: Ensures that the statutory codification of the New York Convention does not diminish pre-existing legal remedies.
Key Landmark Precedents:
  • Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., (2011) 8 SCC 333: The Supreme Court noted that Section 51 ensures that statutory provisions under Chapter I do not extinguish any pre-existing legal or treaty rights of enforcement.
  • Renusagar Power Co. Ltd. v. General Electric Co., 1994 Supp (1) SCC 644: Discussed the preservation of common law rights in foreign award jurisprudence.
Courtroom Practice & Strategic Litigation Guidance:

Rely on Section 51 where a foreign arbitral award cannot be enforced under the New York Convention due to reciprocity reservations, establishing that it remains usable as an acknowledged debt or common law cause of action.

Section 50 All 87 Sections Schedules (4th, 5th, 7th) Section 52