Karnal court orders Badshah to deposit ₹2.2 crore security in ‘Baawla’ payment dispute

A commercial court at Karnal, Haryana has directed rapper and music producer Aditya Prateek Singh alias Badshah to furnish security totalling ₹2.2 crore in an ongoing payment dispute with Unisys Infosolutions over the Hindi-Haryanvi track Baawla. [Unisys Infosolution v. Badshah]

Judge Jasbir Singh Kundu passed the order on July 22, partly allowing Unisys’ petition under Section 9 of the Arbitration and Conciliation Act, 1996.

The security amount comprises an earlier fixed deposit receipt (FDR) of ₹1.7 crore placed on record during the proceedings and an additional ₹50 lakh deposit directed by the court in its latest order. Both deposits are to remain under restraint from encashment or encumbrance until further orders.

Unisys, a Karnal-based media and music distribution company, alleged that Badshah had failed to pay a total of ₹2.88 crore (including costs, interest and other expenses) arising from a 2021 agreement. Under the agreement, Badshah was to pay ₹1.05 crore for promotional activities and ₹65 lakh for completing Baawla's video.

The video was released on July 28, 2021, but Unisys claimed that despite raising two tax invoices in May 2022 amounting to ₹2 crore (inclusive of GST), no payments were made. The company approached the court seeking interim protection before the commencement of arbitration, including freezing Badshah’s bank accounts.

TM Talent Management LLP, Badshah’s talent agency, was also named as a respondent for correspondence purposes, while ICICI Bank was impleaded as a proforma respondent on the ground that Badshah maintained an account there.

The court held that the petition was maintainable despite the absence of pre-institution mediation under Section 12A of the Commercial Courts Act, since the matter sought urgent interim relief.

On merits, the court found a prima facie case in Unisys’ favour, noting that Badshah had not admitted liability “for a single penny” and had provided security of only ₹1.7 crore against the ₹2.88 crore claim.

From Badshah’s conduct, the judge said, “apprehension cannot be ruled out that he may transfer, alienate or sell his entire estate or may withdraw entire balance from bank-accounts to defeat the claim of the petitioner firm.”

In addition to restraining encashment of the earlier ₹1.7 crore FDR, the court ordered Badshah to deposit an additional ₹50 lakh FDR within 60 days. The same restriction on encashment or encumbrance will apply to this new deposit.

It clarified that the interim directions are aimed solely at protecting the parties’ rights until the arbitral tribunal adjudicates the dispute, and that its findings are tentative, based only on pleadings and documents placed on record so far.

In a separate proceeding for appointment of an arbitrator, the Punjab and Haryana High Court on July 17, 2025 issued notice to Badshah, returnable on October 8, 2025.

The Petitioners were represented by Advocates SL Nirwania and Amit Nirwania,

Badshah was represented by Advocate Vijender Parmar