New Delhi, Feb. 15 -- Can a celebrity use India's insolvency courts to recover unpaid appearance or endorsement fees? A ruling by the National Company Law Appellate Tribunal (NCLAT) on 6 February ruled 'no' on this question, providing much-needed clarity on how payment disputes in brand contracts should be legally handled.

The issue came into focus after Bollywood actor Akshay Kumar Bhatia approached an insolvency court to recover dues from Cue Learn, an edtech company. The case raised important questions about whether the Insolvency and Bankruptcy Code (IBC) can be used as a debt-recovery tool in commercial endorsement disputes.

Mint explains the NCLAT ruling and its long-term impact on celebrity brand contracts.

The case arose from a...