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7h ago

Salman Khan’s NCLAT Appeal Over Jerai Fitness Dues Adjourned to Sept. 15

The challenge focuses on whether his largely contested royalty claim can trigger insolvency proceedings.

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Overview

  • NCLAT listed the appeal and, on August 22, adjourned the matter to September 15 at the request of Khan’s counsel.
  • Khan is contesting a May 30 NCLT Mumbai order that dismissed his insolvency plea, finding only Rs 1,63,76,682 plus GST to be an undisputed default and directing the rest to recovery, not insolvency.
  • The dispute stems from a 2018 trade licence allowing Jerai Fitness to use Khan’s BEING STRONG trademark on fitness equipment.
  • Khan sent a demand notice on September 14, 2024 seeking Rs 7.24 crore with 24% interest after agreeing during the pandemic to revise royalty terms through March 31, 2023.
  • Jerai maintains there was a pre-existing dispute and cites investments in new product lines, while the NCLT noted contractual requirements for prior approvals and restrictions on non–pre-approved products under the brand.