Salman Khan moves NCLAT, seeks insolvency against Jerai Fitness

New Delhi, Aug 28 (PTI) Bollywood actor Salman Khan has approached appellate tribunal NCLAT, challenging an NCLT order which had dismissed his plea to initiate insolvency proceedings against Jerai Fitness towards an unpaid amount of Rs 7.24 crore.

This dispute is related to ‘BEING STRONG’, a fitness equipment brand founded by Salman Khan, in collaboration with Jerai Fitness.

The appeal filed by Khan was listed before a two-member bench of the National Company Law Appellate Tribunal (NCLAT) last week. However, it was adjourned on the request of his counsel.

A two member-bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra has directed to list Khan's petition on September 15 for the next hearing.

"Counsel for the appellant prays for an adjournment, adjourned to 15.09.2025," said NCLAT in its order dated August 22, 2025.

In May this year, the Mumbai bench of the National Company Law Tribunal (NCLT) had dismissed Khan's insolvency plea against Jerai Fitness, in which the Bollywood star had claimed an unpaid amount of Rs 7.24 crore.

However, the tribunal had said the claim was disputed in nature and was "in domain of recovery proceedings".

"There exists an undisputed debt amounting to Rs 1,63,76,682 along with GST due from Corporate Debtor and the said amount is in default and the remaining debt claimed in this Petition can not said to be undisputed debt," said NCLT in its 22-page order passed on May 30, 2025.

Khan, who owns trademark "BEING STRONG" and has the exclusive right to grant a licence and the right to use the same, had entered into a trade licence agreement in October 2018.

Jerai Fitness was granted a licence for the usage of trademark "BEING STRONG" on the products manufactured by it.

Thereafter, due to interruptions in business and the onset of the COVID-19 pandemic, at the request of the Corporate Debtor, the Bollywood actor agreed to revise the royalty payable to him from the period of commencement of the first agreement till March 31, 2023.

However, according to Khan, after the Corporate Debtor failed to make the payments, he sent a demand notice on September 14, 2024, demanding payment of Rs 7.24 crore along with interest at 24 per cent per annum and later moved NCLT claiming default.

While Jerai Fitness contended that there was a pre-existing dispute between the parties and that it invested significant money towards making necessary components to launch a category of products known as the “X-tend” series and “Proton series”.

NCLT observed that Jerai Fitness has right to "manufacture, market, distribute, sell" the products under the trademark "BEING STRONG" and to create promotional material using the trademark.

However, as per the clauses there had to be prior intimation of all major and substantial decisions with respect to the manufacture, promotion, marketing and distribution of the products to the petitioner and such decisions were to be taken by Alvira Agnihotri or her authorised person on behalf of petitioner.

NCLT observed Jerai Fitness was restricted from distributing any products under the trademark which were not specifically pre-approved. PTI KRH ANU