Home / Arts and Entertainment / Salman Khan Resolves Rs 7.24 Crores Jerai Fitness Dispute, Withdraws NCLAT Appeal
Salman Khan Resolves Rs 7.24 Crores Jerai Fitness Dispute, Withdraws NCLAT Appeal
8 Oct
Summary
- Salman Khan settles trademark licensing dispute with Jerai Fitness
- Dispute involved Rs 7.24 crores in unpaid royalties and settlement fees
- Khan withdraws insolvency appeal before the NCLAT after reaching agreement
On October 6, 2025, Bollywood star Salman Khan's legal counsel informed the National Company Law Appellate Tribunal (NCLAT) that the actor had resolved his Rs 7.24 crores dispute with Jerai Fitness Limited. This settlement led to the withdrawal of Khan's insolvency appeal before the NCLAT.
The dispute originated from a 2023 agreement between Khan and Jerai Fitness, which allowed the latter to manufacture, market, and sell gym equipment under Khan's "Being Strong" trademark. Under this agreement, Jerai was required 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 subsequent royalties.
Jerai Fitness contested these claims, arguing that Khan had failed to fulfill his obligations under the agreement, such as providing timely approvals for product designs and promotional materials, and not attending the launch of Jerai's "Proton" series in November 2023. The company maintained that the invoices relied on by Khan were raised only after Jerai 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 earlier dismissed Khan's insolvency plea in May 2025, stating that while the Rs 1.63 crores settlement amount 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 now been resolved amicably between the parties.
