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Bollywood actor Salman Khan on Wednesday withdrew his insolvency appeal before the National Company Law Appellate Tribunal (NCLAT) against Jerai Fitness after settling a dispute worth over Rs 7.24 crore. Khan’s counsel informed the tribunal that the demand draft as agreed under the consent terms had been received and sought permission to withdraw the appeal. A two-member bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Arun Baroka recorded the consent terms signed between Salman Khan and Jerai Fitness and permitted the withdrawal. “The appellant (Salman Khan) is allowed to withdraw the appeal. The appeal stands dismissed as withdrawn” the NCLAT said in its order. What Was Matter Between Salman Khan & Jerai Fitness? The case pertained to ‘Being Strong’ a fitness equipment brand founded by Salman Khan in association with Jerai Fitness. Salman Khan had moved to the appellate tribunal NCLAT after the Mumbai bench of the National Company Law Tribunal (NCLT) in May this year dismissed his insolvency plea against Jerai Fitness. Dismissing the plea NCLT had said the claim was disputed in nature and was in the domain of recovery proceedings. There exists an undisputed debt amounting to Rs 16376682 along with GST due from Corporate Debtor and the said amount is in default and the remaining debt claimed in this Petition can not said to be undisputed debt said NCLT in its 22-page order passed on May 30 2025. Khan who owns trademark BEING STRONG and has the exclusive right to grant a licence and the right to use the same had entered into a trade licence agreement in October 2018. Jerai Fitness was granted a licence for the usage of trademark BEING STRONG on the products manufactured by it. Thereafter due to interruptions in business and the onset of the COVID-19 pandemic at the request of the Corporate Debtor the Bollywood actor agreed to revise the royalty payable to him from the period of commencement of the first agreement till March 31 2023. What Was Salman Khan’s Argument In Matter? However according to Khan after the Corporate Debtor failed to make the payments he sent a demand notice on September 14 2024 demanding payment of Rs 7.24 crore along with interest at 24 per cent per annum and later moved NCLT claiming default. While Jerai Fitness contended that there was a pre-existing dispute between the parties and that it invested significant money towards making necessary components to launch a category of products known as the X-tend series and Proton series. NCLT observed that Jerai Fitness has the right to manufacture market distribute sell the products under the trademark BEING STRONG and to create promotional material using the trademark. However as per the clauses there had to be prior intimation of all major and substantial decisions with respect to the manufacture promotion marketing and distribution of the products to the petitioner and such decisions were to be taken by Alvira Agnihotri or her authorised person on behalf of petitioner. (With Inputs From PTI)