Salman Khan resolves Rs 7.24 crores Jerai fitness dispute, withdraws NCLAT appeal : Bollywood News
Bollywood actor Salman Khan has resolved his Rs 7.24 crore dispute with Jerai Fitness Limited, leading to the withdrawal of his insolvency appeal before the National Company Law Appellate Tribunal (NCLAT). The settlement concerns a brand licensing agreement under Khan’s fitness brand, Being Strong.
Salman Khan resolves Rs 7.24 crore Jerai fitness dispute, withdraws NCLAT appeal
On October 6, Khan’s legal advisor informed the NCLAT that the conditions of the consent had been fulfilled. Subsequently, on October 8, the court recorded the terms of consent and allowed the actor to withdraw his appeal. The bench, comprising Justice Ashok Bhushan and technical member Arun Baroka, dismissed the appeal as withdrawn.
The dispute stems from a 2023 agreement between Khan and Jerai Fitness, which allowed the latter to manufacture, market and sell gym equipment under the Khan brand. Under this agreement, Jerai was required to pay either a minimum guarantee of Rs 3 crore per annum or 3% of net sales, whichever was higher. Khan alleged that Jerai failed to honor bills amounting to Rs 7.24 crore, including a one-time settlement payment of Rs 1.63 crore for the period before March 2023 and royalties for subsequent years.
Jerai Fitness disputed these claims, arguing that Khan had failed to fulfill his obligations under the agreement. The company contended that Khan failed to timely approve product designs and promotional materials and failed to attend the launch of its ‘Proton’ series at the Bombay Exhibition Center in November 2023. Jerai contended that the invoices relied upon by Khan were raised only after the company had issued a termination notice in September 2024, with effect from April 2025, and therefore could not form the basis of a insolvency claim.
The NCLT Mumbai Bench had rejected Khan’s insolvency plea in May, stating that while the settlement amount of Rs 1.63 crore for the earlier period was an undisputed liability, the demand for higher royalties was subject to a genuine pre-existing dispute regarding Khan’s execution of the agreement. The court found that the petition fell within the “domain of recovery proceedings” rather than resolution under the Insolvency and Bankruptcy Code (IBC).
Following the dismissal, Khan contacted the NCLAT to challenge the decision. However, with the recent settlement and withdrawal of the appeal, the matter has been resolved amicably between the parties.
Khan was represented by lawyers Varun Kalra, Parag Khandhar, Tapan Radkar and Shaham Ulla of DSK Legal, while Jerai Fitness was represented by lawyers Himanshu Satija, Prerna Wagh, Prangana Baraua, Pranav Saigal, Harshit Khanduja, Harsh Saxena and Anshul Rao.
Also Read: Director JK Bihari on Casting Salman Khan in Biwi Ho To Aisi, ‘I Just Judged Him on His Walk’
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