An out of the court settlement has not yet been arrived over the dispute on 'Kavalan' as announced, following which the stay issued last week on the film's release continues.

This has been confirmed by J K Saravanan of Tantra, who has acquired the foreign distribution rights of the Vijay-starrer movie and later approached the court seeking a stay,

"It is true that we informed the court that we would arrive at a settlement at the earliest. But a compromise solution has not been worked out yet between us (Saravanan, producer Romesh Babu and director Shakthi Chidambaram, who acquired the movie's release rights)," he says.

Meanwhile, Tamil Nadu Film Exhibitors’ Association reportedly decided on Wednesday not to screen any of Vijay’s films across the State until the actor compensates for the losses his earlier movies incurred.

A decision in this connection was taken during an executive committee meeting of the association in Coimbatore, it is said.

But all these things have not dampened the spirit of those involved in the making of the film. "It is a soft, gripping script and will sure work big time with the audience," a unit source says.