NCLT Rejects Shikhar Dhawan’s Insolvency Plea, Citing Contractual Ambiguities in Legends League Cricket Payment Dispute [Read Order]
NCLT said this was a contractual dispute with ambiguities, not an insolvency matter, and directed Dhawan to seek relief through civil litigation instead
In a recent ruling The National Company Law Tribunal (NCLT), New Delhi, has refused to admit an insolvency petition filed against the operator of Legends League Cricket and held that the alleged dues of ₹1.24 crore under the Player Agreement could not be treated as operational debt, pointing to inconsistencies in the contract and ambiguities over liability clauses.
The applicant Shikhar Dhawan had sought initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC), claiming unpaid dues of ₹1.24 crore under a Player Agreement.
The applicant argued that Absolute Legends Sports Pvt. Ltd. had contractually bound itself to pay his full player fee of ₹2.65 crore for participating in the 2024 season of Legends League Cricket. He also pointed out that despite raising a valid invoice and fulfilling his obligations—playing matches and promotional commitments—the company paid him only ₹1.51 crore in partial tranches, leaving an outstanding balance of ₹1.13 crore plus interest at 19.15% per annum.
Dhwan also said that repeated reminders and even a formal demand notice under Section 8 of the IBC were ignored, and the company had admitted its liability in writing but failed to pay.
After concerning the matter, the tribunal observed that the appellant’s agreement execution date was unclear, and the invoice was raised before the agreement date, casting doubt on its genuineness, and no evidence was produced to show Dhawan had fully completed promotional and match-related duties, making the entitlement to the full fee uncertain.
In light of the facts, the tribunal held that the appellant failed to establish the claimed dues as operational debt under Section 9 of the Insolvency and Bankruptcy Code.
The bench of Manni Sankariah Shanmuga Sundaram( judicial member ) and Atul Chaturvedi (Technical member )clarified that Dhawan is free to pursue remedies in civil court or other appropriate forums.
Accordingly, the application was dismissed.
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