**Salman Khan Resolves Rs 7.24 Crores Dispute with Jerai Fitness, Withdraws NCLAT Appeal**
Bollywood actor Salman Khan has amicably resolved his Rs 7.24 crores dispute with Jerai Fitness Limited, leading to the withdrawal of his insolvency appeal before the National Company Law Appellate Tribunal (NCLAT). The settlement pertains to a trademark license agreement under Khan’s fitness brand, Being Strong.
On October 6, Khan’s legal counsel informed the NCLAT that the consent terms had been executed. Subsequently, on October 8, the tribunal recorded the consent terms and permitted the actor to withdraw his appeal. The bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka, dismissed the appeal as withdrawn.
### Background of the Dispute
The dispute arose from a 2023 agreement between Salman Khan and Jerai Fitness, which allowed Jerai to manufacture, market, and sell gym equipment under Khan’s trademark. Under this agreement, Jerai was obligated to pay either a minimum guarantee of Rs 3 crores annually or 3% of net sales, whichever was higher.
Khan alleged that Jerai defaulted on invoices amounting to Rs 7.24 crores. This included a one-time settlement payment of Rs 1.63 crores for the pre-March 2023 period and royalties for subsequent years.
### Jerai Fitness’s Counterclaims
Jerai Fitness contested these claims, arguing that Khan had failed to fulfil his obligations under the agreement. The company claimed that Khan did not provide timely approvals for product designs and promotional materials. Additionally, Jerai pointed out his absence at the launch of its Proton series at the Bombay Exhibition Centre in November 2023 as a breach.
Jerai further maintained that the invoices relied upon by Khan were raised only after the company issued a termination notice in September 2024, which was effective from April 2025. Therefore, they argued that these invoices could not form the basis of an insolvency claim.
### Legal Proceedings
The NCLT Mumbai Bench had earlier dismissed Khan’s insolvency plea in May. While the Rs 1.63 crores settlement amount for the earlier period was recognized as an undisputed liability, the larger royalty claim was subject to a genuine pre-existing dispute concerning Khan’s performance under the agreement.
The tribunal concluded that the petition fell under recovery proceedings rather than resolution under the Insolvency and Bankruptcy Code (IBC).
Following the dismissal, Khan approached the NCLAT, challenging the decision. However, with the recent settlement and withdrawal of the appeal, the matter has now been resolved amicably between both parties.
### Legal Representation
Salman Khan was represented by Advocates Varun Kalra, Parag Khandhar, Tapan Radkar, and Shaham Ulla from DSK Legal. Jerai Fitness was represented by Advocates Himanshu Satija, Prerna Wagh, Prangana Baraua, Pranav Saigal, Harshit Khanduja, Harsh Saxena, and Anshul Rao.
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**Also Read:**
*Director J. K. Bihari on Casting Salman Khan in Biwi Ho To Aisi: “I Just Judged Him by His Walk”*
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