Salman Khan Resolves $860K Dispute with Fitness Firm, Drops Insolvency Claim: Report

Bollywood superstar Salman Khan has finally ended his legal battle with gym equipment manufacturer Jerai Fitness Pvt Ltd. The actor reportedly withdrew his insolvency plea after both sides reached a settlement in a Rs 7.24 crore payment dispute linked to his fitness brand Being Strong.As reported by Bar and Bench, the dispute began when Salman Khan, through his brand Being Strong, entered into a trademark licence deal with Jerai Fitness. The arrangement started in 2018, was revised in 2019, and renewed with a new contract in August 2023.Under the terms, Jerai could manufacture, market and sell gym equipment using the Being Strong name. The company was required to pay Rs 3 crore annually or 3% of net sales, whichever was higher.Khan alleged that Jerai failed to make payments amounting to Rs 7.24 crore, including a one-time settlement of Rs 1.63 crore for dues before March 2023 and royalties for later years. After repeated delays, he approached the National Company Law Tribunal (NCLT) in Mumbai, seeking a Corporate Insolvency Resolution Process (CIRP) against the company.Jerai Fitness denied the allegations and claimed that it was actually Khan who did not meet his obligations under the contract. The company stated that the actor failed to approve product designs and promotional materials on time and also skipped the launch of its ‘Proton’ series at the Bombay Exhibition Centre in November 2023.Jerai supported its claims with WhatsApp messages and emails showing repeated requests for approvals and branding support. The firm further argued that the invoices cited by Khan were raised after a termination notice was issued in September 2024, effective from April 2025, and therefore could not be the basis of an insolvency plea.The report further reveals, on May 30, 2025, the NCLT dismissed Khan’s Section 9 petition. While the tribunal accepted that the Rs 1.63 crore payment was undisputed, it found that the remaining royalty amount was part of a genuine pre-existing dispute over Khan’s performance of the contract.The NCLT observed, “The right to receive payment under the said agreement in relation to minimum guarantee accrues only when the user is enabled to use such trademark in the form and manner contemplated.”It concluded that the case belonged to the recovery category, not insolvency under the Insolvency and Bankruptcy Code (IBC). Khan later appealed the decision before the National Company Law Appellate Tribunal (NCLAT).On October 6, Salman Khan’s legal representatives informed the NCLAT that both parties had executed consent terms to settle the dispute. The Appellate Tribunal bench, consisting of Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka, allowed time for filing an affidavit and adjourned the matter to October 8.When the case resumed, the consent terms were placed on record, and Khan’s insolvency appeal was officially withdrawn, bringing the matter to an end.Salman Khan is currently hosting the latest season of the reality show, ‘Big Boss’. On the movies front, he is preparing for ‘Battle of Galwan’, directed by Apoorva Lakhia.Disclaimer for this article: This article is based on reports regarding a legal matter and the settlement reached between the involved parties. The information presented is for informational purposes only and is derived from public court filings and media reports. The specifics of the settlement, including the financial terms, are based on available reports and not verified by the individual parties unless stated in a public announcement. The article is not intended as legal advice or a definitive statement of facts beyond what has been reported in the public domain.