Broad arbitration clauses cover contract-execution disputes, and an unbriefed adjournment request is not a step in proceedings.

An unbriefed Government Pleader's appearance to seek adjournment was not a "step in the proceedings" under Section 34 of the Indian Arbitration Act, and mere silence before suit did not show lack of readiness and willingness to arbitrate. A broadly worded arbitration clause covering disputes "in matter of dispute" was held to extend to claims for extra work and disputed items arising in execution of the contracts, because those claims required construction of the work orders and related to the contracts themselves. The suit was therefore covered by the arbitration agreement and stayed.

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Issues: Whether the suit was liable to be stayed under Section 34 of the Indian Arbitration Act on the ground that the defendant had taken a step in the proceedings or was not ready and willing to proceed with arbitration, and whether the dispute fell within the scope of the arbitration agreement.

Analysis: The defendant's appearance through the Government Pleader, who had no instructions and merely sought adjournment to obtain them, was not treated as a step in the proceedings. Mere silence before suit also did not show absence of readiness and willingness to arbitrate. The arbitration clause was in wide terms, referring "in matter of dispute" to the Superintending Engineer. The claim concerned payment for extra work and disputed items arising in the execution of the contracts, which required construction of the work orders and therefore related to the contracts themselves. Such disputes were held to fall within the arbitration agreement.

Conclusion: The suit was held to be covered by the arbitration agreement and there was no disqualifying step in the proceedings or want of readiness to arbitrate; the suit was stayed.

Ratio Decidendi: A dispute that is sufficiently connected with the construction or performance of a contract falls within a broadly worded arbitration clause, and an adjournment sought by an unbriefed Government Pleader does not constitute a step in the proceedings under Section 34.

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