NCLAT Allows Salman Khan’s Withdrawal of ₹7.24 Crore Insolvency Plea against Jerai Fitness on Mutual Settlement [Read Order]
With this court ruling, a difficult chapter for both parties has come to an end, enabling them to put the disagreement that had drawn the fitness company and the Bollywood star into a well-publicized business struggle behind them.
The National Company Law Appellate Tribunal (NCLAT) recorded the consent terms by Bollywood superstar Salman Khan and Jerai Fitness on mutual settlement. The bench allowed the withdrawal of his ₹7.24 crore insolvency application bringing an end to the protracted legal battle between the two parties.
Salman Khan was named the brand ambassador for Jerai Fitness under a brand endorsement deal, which gave rise to the disagreement. The lawsuit centered on unfulfilled obligations under a 2018 trade license agreement that gave Jerai Fitness permission to manufacture and market fitness equipment using Salman Khan's "BEING STRONG" trademark. Khan asserted that despite the sums being adjusted for disruptions caused by COVID-19, Jerai still failed to make royalty payments.
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On September 14, 2024, a demand notice requesting ₹7.24 crore with 24% interest was sent. Khan filed a default allegation with the National Company Law Tribunal's (NCLT) Mumbai bench. The NCLT, however, rejected the application in May 2025, claiming that only ₹1.63 crore of the total was uncontested and that the remainder contained pre-existing contractual problems.
In an apparent attempt to delay the well-known case, Jerai Fitness filed for corporate insolvency resolution processes (CIRP) in 2021 under the Insolvency and Bankruptcy Code (IBC), 2016.
Khan's withdrawal of the insolvency petition essentially opens the door for the CIRP against Jerai Fitness to be terminated. The National Company Law Tribunal (NCLT), which was in charge of the insolvency procedure, is anticipated to formally end the proceedings now that the parties have resolved the main disagreement. This settlement puts an end to a convoluted legal dispute that has persisted for years in business and legal circles.
With this court ruling, a difficult chapter for both parties has come to an end, enabling them to put the disagreement that had drawn the fitness company and the Bollywood star into a well-publicized business struggle behind them.
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