Vijay Galani claims he had agreed to pay Salman, 49, Rs 10 crore for "Veer" as the signing amount and had promised another Rs 15 crore if the film made profit.
Though the film bombed at the box office, causing loss to Galani, the actor demanded Rs 15 crore, he has alleged.
"I took up this issue with Salman on several occasions and told him that as the movie did not do well, I cannot give him Rs 15 crore. But Salman refused to discuss the issue and said his lawyers will handle it," Galani told PTI.
"I approached the city civil court against the actor and the two associations (over demand of Rs 15 crore by Salman). The court passed an order in my favour. Last month, I issued a legal notice to Salman for defaming me, causing loss of business and reputation and causing mental agony and harassment," Galani said.
The producer said he has sought Rs 200 crore as a compensation for defamation and Rs 50 crore for financial loss.
Salman is currently out on bail after being convicted in the 2002 hit-and-run case.
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