All is not well for Indian wicket-keeper and former captain Mahendra Singh Dhoni who has found himself in a legal trouble after promoting two rival sports brands named Sportsfit World Private Limited (SWPL) and Fit7.
As per Dhoni’s contract with SWPL, he is not allowed to endorse the rival brand Fit7, a gym and fitness chain.
The Delhi High Court has now sent a notice to MS Dhoni in response to a petition which seeks to stop him from endorsing Fit7 on the basis of the exclusive endorsement agreement with SWPL.
The high court has also sought the response from SWPL, its directors, and Fit7 World Private Limited and posted the case for further hearing on September 13.
Vikas Arora who is one of the 3 directors and owns a 33 per cent stake in SWPL has said in his petition that the other directors of SWPL have decided not to act against MS Dhoni despite a clear breach of endorsement agreement.
As per Hindustan Times report, Vikas Arora has invested Rs 22 crores into SWPL and he is planning to make an exit from the company owing to some differences with other stake holders – Rhiti Sports Management Private Limited and Rhiti MSD Alamode Private Limited – he has agreed to exit SWPL at the predetermined price. A separate proceeding in respect of the buy-out has already been initiated.
Vikas Arora also claimed that he has instituted criminal proceedings against MS Dhoni at Punjab and Haryana High Court.
His petition said-
“The breach of the agreement committed by respondent no. 1 (Dhoni) will cause great prejudice to respondent no. 4 (SWPL) and prevent it from optimally utilizing the benefits thereunder.”
On the other side, Sanjay Pandey, one of the directors of SWPL has come in the defence of Dhoni. Sanjay Pandey told Hindustan Times-
“Arora has filed a frivolous petition which is totally baseless and even the maintainability of the petition has been questioned by the High Court.”
Pandey said the petition was filed as “a pressure tactic to blackmail and to unnecessary drag and malign the name of Mahendra Singh Dhoni into an unnecessary controversy”.
He further said-
It is also to “pressurize the company from withdrawing its complaints and claims made against Vikas Arora and his accomplices for various breaches, defaults and illegalities committed by them in the past,”
“In fact the present management is trying to undo the huge financial losses caused to the company by Vikas Arora and his accomplices who have swindled large sums of money running into several crores from the company.”
When asked about Arora’s allegation that the two directors of Fit7, Ashwini Kumar Panndey and Ashutosh Kumar Pandey, are also directors of Rhiti companies, Pandey said-
“All the allegations are unfounded, baseless and frivolous and have only been made to harass the present management of the company.”
What do you think about it?