NCLT Delhi Refuses To Initiate CIRP On Shikhar Dhawan's Plea Against Legends League Cricket Operator

The National Company Law Tribunal (NCLT) at New Delhi on Thursday refused to initiate insolvency proceedings against Absolute Legends Sports Pvt Ltd on a plea filed by Indian cricketer Shikhar Dhawan alleging a default of over Rs. 1.24 crore in unpaid player fees.

Absolute Legends Sports Pvt. Ltd. owns and operates the Legends League Cricket, a franchise-based T20 tournament featuring retired international cricketers.

A bench of Judicial Member Manni Sankariah Shanmuga Sundaram and Technical Member Atul Chaturvedi held that Dhawan failed to establish 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 moved the tribunal under Section 9 of the Insolvency and Bankruptcy Code, seeking initiation of the Corporate Insolvency Resolution Process against the company for the alleged default as of April 30, 2025.

The claim includes not only the principal amount of Rs 1,13,62,500 (1.13 crore) but also an interest calculated at 19.15%, arriving at Rs 10,87,959 (10.87 lakh) per annum under the Player Agreement dated September 10, 2024.

The claim arose from Dhawan's participation in the third season of the Legends League Cricket T20 tournament held between September and October 2024.

Dhawan had argued that the company had approached him to represent the Gujarat team in the league, considering his reputation and standing.

Under the Player Agreement, the league agreed to pay him a fee of Rs 2,65,50,000 (2.65 crore) in three tranches. Twenty-five per cent within five days of execution of the agreement. Fifty per cent before the first match of the league. The remaining twenty-five per cent within fifteen days after the league's conclusion.

Dhawan raised an invoice dated September 7, 2024.

He claimed that while the company paid Rs 1,51,87,500 (1.51 crore) in five tranches, it failed to clear the remaining Rs 1,13,62,500 (1.13 crore).

With interest calculated at 19.15% per annum, Dhawan said the alleged outstanding amount had risen to Rs 1,24,50,459 (1.24 crore) as of April 30, 2025.

Dhawan further stated that despite repeated reminders and a demand notice issued under the Insolvency and Bankruptcy Code, the company neither cleared the dues nor raised any pre-existing dispute. He also relied on an email dated May 18, 2025, which he said showed the company acknowledging the outstanding payment.

The tribunal, however, pointed to several inconsistencies in the contractual arrangement. It noted that the invoice had been raised on September 7, 2024, even though the agreement's stated execution date was September 10, 2024. According to the coram, this chronology raised doubts about the arrangement.

It also observed that certain clauses of the agreement appeared to shift financial liability to the league owner in the absence of a franchise holder. This, the tribunal said, created ambiguity regarding the contractual framework.

Holding that Dhawan had failed to establish that the claimed operational debt had become due and payable, the tribunal said the application did not satisfy the requirements of Section 9 of the Insolvency and Bankruptcy Code and disposed of the plea.