Bollywood actor Salman Khan has 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 Khans 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 The bench, comprising Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka, dismissed the appeal as withdrawn. The dispute arose from a 2023 agreement between Khan and Jerai Fitness, which allowed the latter 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, including a one-time settlement payment of Rs 1. 63 crores for the pre-March 2023 period and royalties for subsequent years. Jerai Fitness contested these claims, arguing that Khan had failed to fulfil his obligations under the agreement. The company contended that Khan did not provide timely approvals for product designs and promotional materials and did not attend the launch of its Proton series at the Bombay Exhibition Centre in November 2023. Jerai maintained that the invoices relied on by Khan were raised only after the company had issued a termination notice in September 2024, effective April 2025, and therefore could not form the basis of an insolvency claim. The NCLT Mumbai Bench had dismissed Khan’s insolvency plea in May, stating that while the Rs 1. 63 crores settlement amount for the earlier period was an undisputed liability, the larger royalty claim was subject to a genuine pre-existing dispute regarding Khan’s performance under the agreement. The tribunal concluded that the petition fell within the domain of recovery proceedings rather than resolution under the Insolvency and Bankruptcy Code (IBC). Following this dismissal, Khan approached the NCLAT, challenging 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 Advocates Varun Kalra, Parag Khandhar, Tapan Radkar, and Shaham Ulla from DSK Legal, while Jerai Fitness was represented by Advocates Himanshu Satija, Prerna Wagh, Prangana Baraua, Pranav Saigal, Harshit Khanduja, Harsh Saxena, and Anshul Rao. Also Read : Director J. K. Bihari on casting Salman Khan in Biwi Ho To Aisi, I just judged him by his walk.
