MANILA — (UPDATED) The Land Transportation Office (LTO) has issued a show cause order Sunday against a car owner who pulled out a handgun on a cyclist in a viral road rage video.

A "thorough investigation" was ordered into the incident where a motorist was seen physically assaulting a cyclist and pulling out a handgun and cocking it near Welcome Rotonda in Quezon City.

"In as much as we want to immediately impose sanctions based on the viral video, we have to observe and respect due process and this includes a fair conduct of investigation," said LTO Chief Asec. Vigor Mendoza II in a statement.

Mendoza added that the show cause order has already been issued through LTO-National Capital Region director Roque Verzosa III against the owner of the red sedan.

In an interview with Teleradyo Serbisyo, the chief of the NCRPO-Public Information Office (PIO) said that the Quezon City Police Department (QCPD) held a press conference Sunday with the suspect saying that he and the cyclist has already reached a settlement.

"Sinabi [sa press conference] na nagkaroon na daw po sila ng settlement nitong siklista," NCRPO-PIO Chief Eunice Salas said.

When asked about the specifications of the settlement, Salas said the suspect did not reveal such details with respect to the cyclist.

"Ang sinabi lang doon kumbaga nagkasundo na sila na hindi na magpa-file ng charges. 'Yun po 'yung pinaka-gist ng kasunduan. Kaya wala pong na-file na kasong kriminal laban sa suspek," said Salas.

However, Raymond Fortun, the cyclist's lawyer, said in a Facebook post that the victim was even the one who paid P500.

"In a nutshell, siya na 'yung binatukan at tinutukan ng baril, pinagbayad pa siya ng P500. Further, the person who uploaded the video has now also been threatened," Fortun said in his post.

Earlier, NCRPO Director BGen Jose Melencio Nartatez Jr. said the man involved has been identified as a retired cop, and is now in police custody.

Salas added that the gun used by the retired cop is also in police custody and that the Philippine National Police is reviewing if his license to carry firearms would be revoked.

She also confirmed that the incident happened last August 8 and that the gun was surrendered to authorities on the same day of the incident.

No formal complaint has been filed as of writing.

Meanwhile, QC Mayor Joy Belmonte released a statement condemning the incident and that she has instructed the QCPD and QC Law and Order Cluster to investigate the incident.

—With reports from Izzy Lee and Raffy Santos, ABS-CBN News