Step in the proceedings under arbitration law requires clear waiver; a document-production request did not forfeit the right to stay suit.

A request for production of original documents made only to enable filing a written statement did not amount to a step in the proceedings under Section 34 of the Arbitration Act. The governing test is whether the party has consciously submitted to the court's jurisdiction for a decision on the merits and unequivocally abandoned the contractual right to arbitration. On the facts, the application's substance showed no waiver of the arbitration clause and no election to have the dispute decided in court, so the right to seek a stay remained intact and the stay of suit was liable to be restored.

---

---

Issues: Whether the defendants, by seeking production of original documents so as to file a written statement, had taken a step in the proceedings within the meaning of Section 34 of the Arbitration Act and thereby lost the right to have the suit stayed.

Analysis: The governing principle is that every act done in the suit does not amount to a step in the proceedings. The act must show a conscious submission to the court's jurisdiction for decision on merits and an unequivocal abandonment of the contractual right to arbitration. On the facts, the application only sought production of original documents to enable filing of a written statement. It did not amount to an election to have the dispute decided in court, nor did it show waiver of the arbitration clause. The substance of the application had to be examined, and its real character did not disclose abandonment of the right to seek stay.

Conclusion: The defendants had not taken a step in the proceedings so as to bar relief under Section 34 of the Arbitration Act; the stay of the suit was liable to be restored.

---