A settlement is about to be reached between TVS Automobile Solutions Pvt Ltd and KPN Travels in the next couple of days with the latter coming forward to clear the dues payable to the former.
This was mentioned by the counsel for TVS Automobile at the hearing before the National Company Law Tribunal (NCLT), Chennai, on Monday. Counsel for KPN Travels was also present in the hearing.
Early this month, the NCLT had ordered insolvency proceedings against KPN Travels in a case filed by TVS Automobile for not receiving payment for supply of various goods.
KPN failed to pay an outstanding of about ₹3.94 crore for supplies made from August 31, 2017 to December 31, 2019. Along with interest of 18 per cent a year, the total outstanding worked out to ₹5.27 crore, TVS Automobile said.
The NCLT appointed Ramachandran Balachandran as the interim resolution professional. The board of directors of KPN was also superseded.
The counsel for TVS Automobile requested the Bench that the hearing may be put off to next week. “We are almost closing a settlement in the next couple of days. It is a very positive development, he said. The Bench posted the matter for October 29.