Salman Khan withdraws ₹7.24 crore bankruptcy case against Jerai Fitness after settlement

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Bollywood actor Salman Khan officially withdrew his ₹7.24 crore bankruptcy petition against Jerai Fitness Ltd after an out-of-court settlement was reached between the two parties. The National Company Law Appellate Tribunal (NCLAT) on Wednesday approved the withdrawal and accepted the consent terms, Live Law reported.

The issue centers on a trade-license agreement that Jerai Fitness signed in October 2018, which gave them the right to produce and sell workout equipment. Salman KhanTrademark of, ‘Being Strong’.

According to the actor, Jerai failed to pay royalties even though new terms were agreed upon due to the disruptions of the COVID-19 pandemic. SalmaN’s legal team submitted a demand notice in September 2024, requesting interest on over ₹7.24 crore at the rate of 24% per annum.

Salman had earlier filed a default claim with the Mumbai bench of the National Company Law Tribunal (NCLT). However, the NCLT rejected their appeal in May 2025, noting that only ₹1.63 crore was uncontested and the remaining amount involved significant pre-existing contractual disputes over product lines, rights and authorizations.

According to Livemint, unresolved issues include marketing, distribution and pre-approval as well as Gerai’s investment in new product series (such as the ‘X-Tend’ and ‘Proton’ series).

According to NCLT, Jerai Fitness was not allowed to distribute any goods using a name that was not explicitly pre-approved. The tribunal said the claim was “in the scope of recovery proceedings” rather than resolution under the Insolvency and Bankruptcy Code (IBC).

Dissatisfied with the NCLT decision, Salman filed an appeal in the NCLAT and the hearing of the case took place on October 6, which was later adjourned. NCLAT has disposed of the appeal, and the settlement has now been entered into, thus ending the insolvency litigation of both the parties.

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The bench that took the consent included Chairman Justice Ashok Bhushan and technical member Arun Baroka.

Salman Khan was represented by attorneys Parag Khandhar, Varun Kalra, Tapan Radkar, and Shaham Ulla on the legal teams under the direction of DSK Legal. Advocates Himanshu Satija, Pranav Saigal, and Harshit Khanduja represented Jerai Fitness.