TVS Automobile Solutions Pvt. Ltd on Wednesday signed a settlement pact with KPN Travels India Ltd. over the issue of payment of dues.

Earlier this month, NCLT Chennai ordered insolvency proceedings against KPN Travels in a case filed by TVS Automobile Solutions. TVS had said KPN failed to pay dues of ₹3.94 crore for supplies made from August 31, 2017 to December 31, 2019 and, along with interest of 18% a year, the total outstanding worked out to ₹5.27 crore. KPN has agreed to pay ₹4.5 crore against the outstanding amount in two instalments.

The first instalment of ₹2 crore has been paid on signing the pact and the remaining ₹2.5 crore is to be paid on or before November 22, as per the agreement.

The parties will file the settlement pact before NCLT and TVS will seek to withdraw its insolvency petition.