RACHAPPA GURUADAPPA BIJAPUR vs GURUSIDDAPPA NURANIAPPA & ORS.

The Supreme Court held that under Section 34 of the Arbitration Act, 1940, a party must not take any steps in the proceedings before filing for a stay of the suit based on an arbitration agreement. The Court clarified that 'taking any other steps in the proceedings' must clearly indicate an intention to waive the arbitration agreement. In this case, the petitioner had sought adjournments for filing a written statement, which constituted a step that disentitled them from seeking a stay of the suit. The Court dismissed the Special Leave Petition, affirming the lower court's ruling.