Shikhar Dhawan Vs Absolute Legends Sports Private Limited (NCLT Delhi)
An application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Absolute Legends Sports Private Limited for an alleged default of ₹1,24,50,459 as on 30.04.2025. The claimed amount comprised a principal of ₹1,13,62,500 and interest of ₹10,87,959, calculated at 19.15% per annum under the Player Agreement dated 10.09.2024.
The Corporate Debtor operates Legends League Cricket, a franchise-based T20 cricket league for retired international players. The dispute arose from alleged non-payment of the Player Fee payable for participation in the third season of the Legends League Cricket tournament held between September and October 2024.
Under the Player Agreement, the Operational Creditor was engaged to represent the Gujarat franchise team and was entitled to a Player Fee of ₹2,65,50,000. The agreement provided that the fee would be paid in three tranches: 25% within five days of execution of the agreement, 50% on or before the first match of the league, and 25% within fifteen days after the conclusion of the league, which ended on 16.10.2024. Accordingly, the full payment was contractually due by 01.11.2024.
The Operational Creditor raised Invoice No. SD/2024-25/15 dated 07.09.2024 for the Player Fee. The Corporate Debtor made partial payments totaling ₹1,51,87,500 between 18.09.2024 and 05.10.2024, leaving an alleged outstanding principal of ₹1,13,62,500. The applicant claimed that repeated reminders through messages and emails were sent seeking payment of the outstanding amount. A demand notice dated 08.05.2025 under Section 8 of the IBC was also issued. The Corporate Debtor responded by email dated 18.05.2025, acknowledging the dues and promising payment within two weeks, but no payment was subsequently made.
