How to set Timeout for each test case in the Test Suite

This is because some of our actions in the test case are going in infinite loop but not failing. This is due to the product bug. However, this is making the next cases to not execute. How do we exit out of the test case in such instances??

I may not have a complete understanding of your concern, however, if your test cases are in a test suite, then when the test case fails, it should move to the next test case in the test suite. If your test case are not failing, then add a “FailureHanding.STOP_ON_FAILURE”, to any statement that you are having concerns with.
Also, perhaps you should add an exit strategy in the case of your “infinite” loop to prevent it.