The issue focuses on a trade-licence agreement that Jerai Fitness signed in October 2018 that granted them the authority to produce and sell workout equipment using Salman Khan's trademark, ‘BEING STRONG.’
According to the actor, Jerai failed to pay royalties, although the new conditions were agreed upon because of the COVID-19 pandemic's disruptions. Salma n's legal team submitted a demand notice in September 2024, requesting ₹7.24 crore plus interest at a rate of 24% annually.
Salman previously filed a default claim with the National Company Law Tribunal's (NCLT) Mumbai bench. The NCLT, however, rejected his appeal in May 2025, noting that only ₹1.63 crore was uncontested and that the remaining amount contained significant pre-existing contractual disputes over product lines, rights, and authorisations.
Unresolved issues included marketing, distribution, and prior approvals, as well as Jerai's investment in new product lines (like the ‘X-tend’ and ‘Proton’ series), according to Livemint.
According to NCLT, Jerai Fitness was not allowed to distribute any goods using the name that were not expressly pre-approved. The tribunal went on to state that the claim was “in the domain of recovery proceedings” rather than resolution under the Insolvency and Bankruptcy Code (IBC).
Dissatisfied with the NCLT's decision, Salman filed an appeal with NCLAT, and the matter was heard on October 6, which was later postponed. NCLAT has disposed of the appeal, and the settlement is now recorded, thus ending the two parties' insolvency litigation.
Chairperson Justice Ashok Bhushan and Technical Member Arun Baroka made up the bench that took the consent.
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.
