Law: Arbitration Act (X of 1940)

Section: 34

Arbitration Act (X of 1940)- ----S.34---Stay of legal proceedings---Requirement of filing application for stay before filing "written statement or taking any other step"---Seeking adjournment for filing written statement amounts to "any other step"---Stay not permissible thereafter. In view of section 3-1 of the Arbitration Act in order to have the proceedings in the suit stayed, there must be an arbitration agreement between the parties convering the disputes in question. The section stipulates that in order that stay may be granted under the section, it is necessary that the following conditions are fulfilled:--,   The proceedings must have commenced by a party to an arbitration agreement against any other party to the agreement.   The legal proceedings, in this case the suit, which is sought to be stayed must be in respect of a matter agreed to be referred;   The applicant for stay must be a party to the legal proceedings, the suit in this case;   The applicant must have taken no steps in the proceedings after appearance;   The applicant must satisfy that only the, applicant was at the time when the proceedings were commenced, ready and willing to do everything necessary for the proper conduct of the arbitration; and   The Court must also be satisfied that there was no sufficient reason why the matter should not be referred to arbitration. Thus, section 34 requires that the application for stay of legal proceedings must be filed before the filing of the written statement or taking any other step in the proceedings. In order to be entitled to stay under S.34 of the Act, it is imperative to find out whether "any other steps in the proceedings" have been taken before making an application for stay apart from written statement. "Some other step" mentioned in the section must indisputably be such step as would manifestly display an unequivocal intention to proceed with the suit and to give up the right to have the matter disposed of by arbitration. The expression "taking any other steps in the proceedings" does not mean that every step in the proceedings would come in the way of…