Salman Khan’s ₹7.24 crore dispute with Jerai fitness comes to an end after settlement

The legal dispute between actor Salman Khan and gym equipment maker Jerai Fitness has finally been settled after both parties submitted consent terms before the National Company Law Appellate Tribunal (NCLAT).

The issue began when Salman Khan entered into a trademark licensing agreement with Jerai Fitness through his fitness brand Being Strong. The partnership started in 2018, was revised in 2019, and renewed again in August 2023 under a fresh contract, as reported by Bar & Bench

Under the deal, Jerai was allowed to manufacture, market, and sell gym equipment using the Being Strong brand name. In return, the company had to pay Rs 3 crore annually or 3% of its net sales, whichever was higher.

Salman Khan later claimed that Jerai had failed to pay dues amounting to Rs 7.24 crore, which included a one-time settlement of Rs 1.63 crore for payments pending before March 2023, along with royalties for the following years.

After repeated delays in payment, Khan approached the National Company Law Tribunal (NCLT) in Mumbai to start a Corporate Insolvency Resolution Process (CIRP) against Jerai Fitness.

However, Jerai denied all allegations and said it was Salman who had not fulfilled his side of the deal. The company claimed the actor delayed approvals for product designs and promotional materials and even skipped the launch of its new ‘Proton’ series at the Bombay Exhibition Centre in November 2023.

Jerai also presented WhatsApp messages and emails showing multiple requests made to Salman Khan’s team for approvals and branding support. The company further argued that the invoices mentioned by Khan were issued after it had already sent a termination notice in September 2024 — set to take effect in April 2025 — and therefore could not be used as grounds for an insolvency case.

On May 30, the NCLT dismissed Salman Khan’s Section 9 petition, observing that while the Rs 1.63 crore settlement was an undisputed liability, the remaining royalty claim involved a genuine pre-existing dispute about Khan’s performance under the agreement.

The tribunal said, “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 fell under recovery proceedings, not insolvency resolution under the Insolvency and Bankruptcy Code (IBC).

Later, on October 6, Salman Khan’s lawyers informed the NCLAT that both sides had reached a mutual settlement and signed consent terms to close the matter. The appellate bench, led by Justice Ashok Bhushan and Technical Member Arun Baroka, allowed time to file an affidavit and adjourned the hearing to October 8.

When the hearing resumed, the signed consent terms were officially submitted, and Salman Khan’s insolvency appeal was formally withdrawn. With that, the legal battle between Salman Khan and Jerai Fitness came to an end.