A settlement has been reached between TVS Automobile Solutions Pvt Ltd and KPN Travels with the latter coming forward to clear the dues payable to TVS automobile. A settlement was signed recently between the two parties, said the counsel for TVS Automobile before National Company Law Tribunal, Chennai, on Friday, during a hearing.

The Counsel filed an application before the NCLT for correction of a mistake that he made in the respondent’s CIN number, which was incorporated in the Tribunal’s previous order.

Also read: Non-payment of dues: TVS Auto, KPN Travels working on settlement

The Bench pointed out since the agreement was signed, this application becomes infructuous. However, the counsel pointed out that the law requires that the IRP file the copy of the settlement before the Court.

The Bench posted the matter on November 11, 2021, with all the relevant applications.

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.

Also read: NCLT admits TVS Automobile plea against KPN to recover ₹5.27-cr dues

Outstanding dues

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 The board of directors of KPN was also superseded.

Counsel for TVS Automobile in the previous hearing said that the case may be put up next week. “We are almost closing a settlement in the next couple of days. It is a very positive development,” he said.

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