FOOD CORPORATION OF INDIA vs M/s. THAKUR SHIPPING CO. LTD. & ORS.

The Supreme Court held that under Section 34 of the Arbitration Act, 1940, a party seeking a stay of proceedings must demonstrate that they were ready and willing to arbitrate at the commencement of the proceedings. The Court found that the respondents' silence and evasive responses indicated a lack of willingness to proceed with arbitration, justifying the trial court's conclusion that they were not ready to arbitrate. The High Court's characterization of the trial court's decision as perverse was deemed incorrect, leading to the allowance of the appeals and the affirmation of the trial court's ruling.