Salman Khan Settles ₹7.24 Crore Dispute with Jerai Fitness
Bollywood star Salman Khan has successfully resolved his dispute with Jerai Fitness Limited, which involved an amount of ₹7.24 crores. This settlement led to the withdrawal of his appeal related to insolvency at the National Company Law Appellate Tribunal (NCLAT). The issue centered around a trademark license agreement linked to Khan’s fitness brand, Being Strong.
On October 6, Khan’s lawyers informed the NCLAT that the terms of the settlement had been agreed upon. By October 8, the tribunal officially recorded this and allowed Khan to withdraw his appeal. The tribunal, chaired by Justice Ashok Bhushan and Technical Member Arun Baroka, dismissed the appeal as withdrawn.
The dispute originated from a 2023 agreement allowing Jerai Fitness to manufacture and sell gym equipment under Khan’s brand. According to the agreement, Jerai was supposed to pay either a minimum guarantee of ₹3 crores per year or 3% of net sales, whichever was higher. Khan claimed that Jerai had failed to pay invoices totaling ₹7.24 crores, which included a one-time settlement payment of ₹1.63 crores for the period before March 2023 and royalties for later years.
Jerai Fitness disputed these claims, mentioning that Khan had not met his obligations under the agreement. They argued that he did not provide timely approvals for product designs and marketing materials, nor did he attend the launch of their “Proton” series at the Bombay Exhibition Centre in November 2023. Jerai asserted that the invoices Khan referred to were issued only after they had sent a termination notice in September 2024, which was set to take effect in April 2025. Hence, they argued that these invoices could not support an insolvency claim.
In May, the NCLT Mumbai Bench dismissed Khan’s plea, recognizing the ₹1.63 crores settlement amount as a valid claim but noting that the larger royalty dispute stemmed from questions about Khan’s performance under the agreement. The tribunal decided that the matter fell under recovery proceedings, rather than insolvency resolution.
After this dismissal, Khan appealed to the NCLAT. However, with the recent settlement, both parties have reached an amicable resolution. Khan was represented by a team of lawyers from DSK Legal, while Jerai Fitness had its own team of advocates handling the case.
This outcome marks the end of a significant dispute and allows both Salman Khan and Jerai Fitness to move forward.
