My typo. This: my $sel = IO::Socket->new( $socket ); should have been: my $sel = IO::Select->new( $socket );.

Try this:

#!perl -w
use strict;
use IO::Socket::INET;
use IO::Select;

my $channel_id = open_channel("127.0.0.1", "7777");

sub open_channel {
    # create a connecting socket
    my $host = shift;
    my $port = shift;
    my $timeout = 5;
    
    if ( $host !~ m/(\d+)\.(\d+)\.(\d+).(\d+)/i ) {
        print "IP Address:'$host' is not a Valid IP-Address.";
        return 139;
    }
    my $socket = new IO::Socket::INET (
        PeerHost => $host,
        PeerPort => $port,
        Proto => 'tcp',
    );
    die "cannot connect to the server $!\n" unless $socket;
    
    my $sel = IO::Select->new( $socket );
    
    if ( !defined $socket ) {
        print "Opening TCP Channel to host: $host and Port: $port Fail
+ed !!";
        return 138;
    }
    else {
        $socket->send("Check Connectivity");
        while (1) {
            my @ready = $sel->can_read( $timeout ) 
                or do{
                    print "=> Time-Out as no data received for '$timeo
+ut sec'.!!\n";
                    last;
                };
            
            my $recieved_data= <$socket>;
            if ( defined $recieved_data ) {
                chomp($recieved_data);
                if ($recieved_data =~ /Connected to TCP socket server/
+i){
                    print "TCP Connection established with Channel id:
+ '$socket'\n";
                    return $socket;
                }
                else{
                    print "Cannot craete connection with server\n";
                    return 137;
                }
            }
        }
        $socket->close();
    }
}
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Note: this is still untested code. The idea is that you should look at the docs for IO::Select and try to understand what the above code is suggesting.