Tree House Education Accessories Limited has officially disclosed the resolution of its arbitration dispute with Vidya Bharti Samiti through a regulatory filing dated December 12, 2025. The company submitted detailed disclosures to stock exchanges under SEBI Listing Regulations, providing comprehensive information about the settlement terms and financial implications.

Settlement Details and Terms

The arbitration matter between TreeHouse Education and Vidya Bharti Samiti has been disposed of through consent terms dated September 30, 2025, with the arbitral award issued on December 9, 2025. The settlement encompasses several key financial components:

Regulatory Compliance and Disclosure

TreeHouse Education filed the disclosure pursuant to Regulation 30 of SEBI Listing Regulations, identifying this as material litigation requiring disclosure. The company's regulatory filing confirms that both parties have mutually resolved their disputes and differences, with the respondent making the settlement payment toward invoices raised by the company.

Background of the Dispute

The arbitration arose from service agreements between TreeHouse Education and Vidya Bharti Samiti, a registered society operating schools in Rajasthan. TreeHouse Education had provided facilitation services including curriculum development, teaching aids, educational improvement services, and training for teachers under various agreements dating back to 2012.

Financial Impact Analysis

The settlement has both immediate and long-term financial implications for TreeHouse Education. The company's recent balance sheet data provides context for understanding these impacts:

The immediate settlement payment of Rs. 11.00 lakh will modestly boost current assets, while the bad debt waiver of Rs. 80.97 lakh represents a one-time impact on the company's financial position. The extended recovery period for the Rs. 29.00 crore refundable deposit over 30 years will create a long-term receivable structure.

Arbitration Process and Timeline

The arbitration proceedings were constituted by the Bombay High Court in December 2023, with sole arbitrator Bhavik P. Manek overseeing the case. The parties engaged in settlement discussions throughout 2024 and 2025, ultimately reaching consent terms that were formalized in the arbitral award.

Conclusion

The resolution of this arbitration dispute represents a significant milestone for TreeHouse Education, providing clarity on a long-standing matter while establishing a structured framework for deposit recovery. The regulatory disclosure demonstrates the company's commitment to transparency and compliance with listing obligations, offering stakeholders comprehensive information about the settlement's financial implications.

Tree House Education Accessories Ltd, a company specializing in educational accessories, has seen a significant change in its shareholding structure. Abhishek Bhatia, a member of the promoter group, has increased his stake in the company through open market transactions.

Key Details of the Acquisition

Impact on Promoter Group Shareholding

This acquisition has resulted in an increase in the promoter group's total shareholding in TreeHouse Education Accessories Ltd. The move could be seen as a sign of confidence in the company's future prospects by its promoters.

It's important to note that changes in shareholding patterns can sometimes influence investor sentiment and potentially impact the stock's performance in the market. However, the long-term implications of this increased promoter stake will depend on various factors, including the company's financial performance and overall market conditions.