NATIONAL COMPANY LAW TRIBUNAL (NCLT) on Thursday declined to initiate insolvency proceedings against Absolute Legends Sports in a petition filed by Indian cricketer Shikhar Dhawan, who had alleged a default of more than Rs 1.24 crore in unpaid player fees.
Absolute Legends Sports owns and operates Legends League Cricket, a franchise-based T20 tournament that features retired international cricketers.
A bench comprising Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi held that Dhawan had failed to demonstrate that the claimed operational debt had become due and payable.
The tribunal observed, “However, no material has been placed on record to establish that the Operational Creditor completed the League or fully discharged the promotional and match-related obligations as contemplated under the Agreement, thereby rendering the entitlement to the entire claimed amount uncertain.”
Dhawan had approached the tribunal under Section 9 of the Insolvency and Bankruptcy Code, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against the company over the alleged payment default.
The claim included a principal amount of Rs 1,13,62,500 (Rs 1.13 crore), along with interest calculated at 19.15 per cent, amounting to Rs 10,87,959 (Rs 10.87 lakh) per year under a player agreement dated 10 September 2024.
The dispute stems from Dhawan’s participation in the third season of Legends League Cricket, which took place between September and October 2024. According to Dhawan, the company had approached him to represent the Gujarat franchise in the league, citing his reputation and stature in the sport.
Under the player agreement, the league had agreed to pay him a total fee of Rs 2,65,50,000 (Rs 2.65 crore) in three instalments: 25 per cent within five days of executing the agreement, 50 per cent before the first match of the league, and the remaining 25 per cent within 15 days after the tournament’s conclusion.
Dhawan raised an invoice dated 7 September 2024. He claimed that although the company paid Rs 1,51,87,500 (Rs 1.51 crore) across five instalments, it failed to clear the remaining Rs 1,13,62,500 (Rs 1.13 crore).
The cricketer also argued that despite repeated reminders and a demand notice issued under the Insolvency and Bankruptcy Code, the company neither settled the dues nor raised any pre-existing dispute. He further cited an email dated 18 May 2025, which he claimed acknowledged the outstanding payment.
However, the tribunal identified several inconsistencies in the contractual arrangement. It noted that the invoice had been raised on 7 September 2024, even though the agreement was stated to have been executed on 10 September 2024, raising questions about the sequence of events.
The bench also observed that certain clauses in the agreement appeared to transfer financial liability to the league owner in the absence of a franchise holder, creating ambiguity within the contractual framework.
Concluding that Dhawan had not established that the claimed operational debt had become due and payable, the tribunal ruled that the petition did not meet the requirements of Section 9 of the Insolvency and Bankruptcy Code and accordingly disposed of the plea.
