NCLAT Issues Notice On Shikhar Dhawan's Appeal Against Rejection Of CIRP Plea Against Absolute Legends Sports

The National Company Law Appellate Tribunal (NCLAT) at Delhi on Friday issued notice in an appeal filed by cricketer Shikhar Dhawan challenging the rejection of his insolvency plea against Absolute Legends Sports Private Limited.

The appellate tribunal will examine whether Dhawan's claim for unpaid player fees for his participation in the Legends League Cricket qualifies as an operational debt and whether the National Company Law Tribunal (NCLT) was right in holding that the debt was not due and payable.

A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra granted Absolute Legends Sports Private Limited three weeks to file its reply and listed the matter for further hearing on May 18.

The appeal arises from an order dated February 5, 2026, passed by the Delhi Bench of the NCLT, which had dismissed Dhawan's plea under Section 9 of the Insolvency and Bankruptcy Code seeking initiation of the Corporate Insolvency Resolution Process against the company, which operates the Legends League Cricket.

Dhawan had approached the NCLT claiming default in payment of Rs 1,24,50,459, arising out of a Player Agreement executed in connection with the third season of the Legends League Cricket held between September and October 2024.

Under the agreement, the league had agreed to pay a total player fee of Rs 2,65,50,000 in three tranches. While payments amounting to Rs 1,51,87,500 were made, the balance amount remained unpaid, leading to the dispute.

In its order, the NCLT held that Dhawan had failed to establish that the claimed operational debt was due and payable, pointing to inconsistencies and ambiguities in the Player Agreement and the material placed on record.

The tribunal noted that the agreement did not clearly specify its execution date, even as the invoice had been raised prior to the purported date of the agreement, raising doubts about its genuineness. It further observed that no material had been placed on record to conclusively establish that Dhawan had fulfilled all contractual obligations, including match participation and promotional commitments.

Finding that the very basis and quantum of the alleged debt were doubtful, the NCLT dismissed the application while leaving it open to Dhawan to pursue remedies under other applicable laws.

Before the NCLAT, counsel for Dhawan submitted that material on record, including an affidavit evidencing his participation in the league, had not been disputed by the corporate debtor and that the tribunal had erred in rejecting the claim at the threshold.