Given a standard contract between companies that include mandatory binding arbitration for any contract disputes: Is arbitration still mandatory when the contract violation is also a serious criminal violation?
A contract violation (or a tort)_ as between two parties is a separate issue from a criminal violation, even though the same conduct might represent both.
It might be mandatory to use arbitration to settle the civil issue. However, no arbitration decree or contract can compel one party not to report a crime, particularly when failure to report would itself be criminal. Nor can a contract requiring arbitration to deal with a dispute over a contract bind the authorities from prosecuting a crime, should they believe that there is a crime to be dealt with.