Bollywood actor Salman Khan has challenged the NCLT order in the Appellate Tribunal NCLAT, which rejected his petition to initiate bankruptcy for an outstanding amount of Rs 7.24 crore against Jerai fitness. This controversy is associated with the fitness tool brand ‘Being Strong’ established by Salman Khan in collaboration with Jerai Fitness.
Salman signed an agreement with Jerai fitness over the license rights of his fitness tool brand ‘Being Strong’. There is a dispute about its royalty payment.
In May, Salman filed a insolvency against the Jerai fitness in the Mumbai bench of the National Company Law Tribunal (NCLT). But the petition was dismissed, saying that the claim is of controversial nature and this insolvency comes under the purview of the recovery process rather than the law.
Also read this: Jailonsci entrusted the special responsibility to the former Ukraine’s former Deputy PM, who is Olha Stephanishna?
Salman has now appealed before the National Company Law Appellate Tribunal (NCLAT) against this order of NCLT. The case was listed on August 22 for hearing but at the request of his lawyer it has been postponed till September 15. In October 2018, Salman signed a trade -colicet agreement with Jerai fitness in which the right to use the Being Strong Brand.
Also read this: As long as I am alive, people will not let anyone snatch the franchise … Mamta Banerjee rains on BJP
Royalty payment was amended due to Kovid-19 epidemic and business disruption. However, the actor says that Jerai Fitness did not pay the royalty amount on time. Salman sent a notice in September last year with a demand of Rs 7.24 crore, including 24 percent annual interest. At the same time, Jerai Fitness says that there was already a dispute between them and he had invested large capital for products like ex-tende and proton series. The NCLT admitted that the license-receiving unit was allowed to sell and promote the product but it was necessary to take pre-influence.