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2026ArbitrationHigh CourtJune 2026LatestLegal

Criminal Overtones Do Not Bar Arbitration Reference

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Commercial Suit of the plaintiffs against the defendant for declaration that the MoU and the Share Subscription cum Shareholder Agreement are illegal and void.  In the said suit, section 8 application for reference to arbitration.

Merely on the ground that there are “criminal overtones” or because a party claims that there are “public overtones”, the dispute would not become non-arbitrable. The Agreement having been signed by both, the Plaintiffs as well as the Defendant, and that instrument having an arbitration clause, all other contentions about the evidentiary value of facts in relation to the existence of the bargain in the Agreement squarely fall in the domain of the Arbitral Tribunal.

The Agreement containing an arbitration clause, when juxtaposed with the pleadings and prayers in the 2017 Suit, would indicate that the subject matter of the 2017 Suit is nothing but the subject matter of the arbitration clause contained in the Agreement.

Judgment dated 9.6.2026 of the High Court of Bombay in Notice of Motion No.665 of 2019 in Commercial Suit No.621 of 2017 of Shashisumeet Production Pvt td and others   Vs.   kuresh R Kushesh @ Dhiren

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