Bollywood star Salman Khan has amicably resolved his ₹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 concerns a trademark license agreement under Khan’s fitness brand, Being Strong.
On October 6, Khan’s legal team informed the NCLAT that the parties had executed consent terms. Subsequently, on October 8, the tribunal recorded the settlement and allowed Khan to withdraw his appeal. The bench, headed by Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka, dismissed the appeal as withdrawn. The conflict originated from a 2023 agreement permitting Jerai Fitness to manufacture, market, and sell gym equipment under Khan’s trademark.
The contract required Jerai to pay a minimum guarantee of ₹3 crores annually or 3% of net sales, whichever was higher. Khan alleged that Jerai defaulted on invoices totaling ₹7.24 crores, including a one-time settlement of ₹1.63 crores for the pre-March 2023 period and royalties for subsequent years.
Jerai Fitness disputed these claims, stating that Khan failed to meet his contractual obligations. The company pointed to delays in approvals of product designs and promotional materials and noted Khan’s absence at the launch of its “Proton” series at the Bombay Exhibition Centre in November 2023. Jerai argued that the invoices cited by Khan were issued only after they served a termination notice in September 2024, effective April 2025, and thus could not justify an insolvency claim. Earlier, the NCLT Mumbai Bench had rejected Khan’s insolvency plea in May, recognizing the ₹1.63 crores settlement as an undisputed liability but ruling that the royalty dispute involved genuine pre-existing disagreements.
The tribunal categorized the matter as a recovery proceeding rather than insolvency resolution under the Insolvency and Bankruptcy Code (IBC).Following the dismissal, Khan appealed to the NCLAT but has now mutually resolved the matter with Jerai Fitness. Salman was represented by Advocates Varun Kalra, Parag Khandhar, Tapan Radkar, and Shaham Ulla from DSK Legal, while Jerai Fitness’s legal team included Advocates Himanshu Satija, Prerna Wagh, Prangana Baraua, Pranav Saigal, Harshit Khanduja, Harsh Saxena, and Anshul Rao.
