NCLAT Issues Notice In Jiostar's Appeal Against Rejection Of Insolvency Plea Against Absolute Legends

The National Company Law Appellate Tribunal (NCLAT) on Monday issued notice in an appeal filed by Jiostar India Pvt. Ltd. against an order rejecting its insolvency plea against Absolute Legends Sports Pvt. Ltd., the promoter of the Legends League Cricket Masters T20 tournament.

The appellate tribunal observed that the National Company Law Tribunal (NCLT) had failed to consider Jiostar's contention that the Media Rights Agreement had been duly signed on its behalf by Ankush Mahajan.

A bench of Judicial Member Justice Mohammad Faiz Alam Khan and Technical Member Naresh Salecha directed Absolute Legends to respond to the appeal within five days through speed post, email, and hand delivery.

The matter has been listed for hearing on July 31.

The appeal challenges the Delhi bench of the NCLT's June 1 order dismissing Jiostar's petition seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Absolute Legends over an alleged default of ₹3.59 crore.

Jiostar, formerly known as Star India Pvt. Ltd., claimed the dues arose from media rights arrangements for the 2023-2025 franchise editions and the 2025 regional edition of the Legends League Cricket Masters T20 tournament.

It said Absolute Legends had granted it exclusive television, digital, and ancillary rights under agreements executed in September 2024. Jiostar also claimed unpaid commentary production charges and reimbursement of Ministry of Information and Broadcasting fees.

The NCLT dismissed the insolvency petition after holding that Jiostar failed to establish the existence of an operational debt. It found that the Media Rights Agreement did not clearly specify its execution date and appeared not to have been executed by Jiostar.

The tribunal also found similar defects in the Airtime Sale Agreement, holding that these deficiencies cast doubt on the authenticity and enforceability of the agreements forming the basis of Jiostar's claim.

For Appellant: Senior Advocate Kunal Tandon