The petitioner is before this Court assailing the orders dated 12.06.2009 and 08.09.2009 impugned at Annexures-E and F to the petition. The petitioner in that view is seeking for a declaration that the documents in question fall under Article 54(d) of the Schedule to the Karnataka Stamp Act, 1957 (‘the Stamp Act’ for short).

2. The document as at Annexure-A dated 05.01.2004 is styled as a ‘Deed of Merger’ between the Jnana Bharathi Trust and the Rashtrothana Trust. The former is described as the Merging Trust and the latter as the Merged Trust. Since the former has extinguished itself by merging with the latter, the said document came to be executed and since the property of the Jnana Bharathi Trust, the Merging Trust was purchased in the name of its Managing Trustee, a declaration as also the General Power of Attorney were executed. The transaction being one of merger, the petitioner keeping in view the provision contained in Article 52(d) of the Stamp Act had paid the stamp duty and completed the transaction. The respondents having taken note of the transaction has thereafter passed the order dated 12.06.2009 holding that the stamp duty as paid is inappropriate but, the transaction would have to be considered as a transfer as provided under Article 20(1) of the Stamp Act.

3. The Authority on finding that certain of the observations contained in the conclusion reached through the order dated 12.06.2009 had preferred the appeal. In the said proceedings, after providing an opportunity to the petitioner also of being heard in the said matter, the order is passed holding that the stamp duty payable is in terms of Article 48(A)(i) of the Stamp Act and the payment thereof was ordered therein. It is in that view the petitioner claiming to be aggrieved is before this Court.

4. The respondents have filed their objection statement seeking to justify their action and contend that since the transaction would amount to settlement as provided under Section 2(1)(q)(iii) of the Stamp Act, the stamp duty was required to be paid under Article 48(A)(i) of the Stamp Act and in that view the conclusion reached through the impugned order is justified. The respondents no doubt have referred in detail with regard to the nature of the documents and in that light to contend that the documents would amount to a ‘settlement’ and therefore the stamp duty is required to be paid.

5. In the light of the rival contentions, having heard the learned counsel for the petitioner and the learned Government Advocate, I have perused the petition papers.

6. At the outset, it is to be taken note that the document in question is dated 05.01.2004 and in that view, the provision providing for stamp duty as contained in the schedule prior to the subsequent amendment which was made on 01.04.2011 would have to be taken into consideration. The provision as contained in Article 52(d) of the Stamp Act would provide that in respect of a transfer, with or without consideration of any Trust property from the Trustee to another Trustee or from a Trustee to a Beneficiary, the stamp duty at Rs.200/. Keeping in view the said provision, a perusal of the Deed of Merger which is the document in issue herein would indicate that the Jnanabharathi Trust which held the properties in question in their name have merged themselves in the Rashtrothana Trust. The relevant clauses thereto is extracted as hereunder:

“3. It is agreed by and between the parties that all assets and disclosed liabilities of the Merging Trust shall be the assets and liabilities of the Merged Trust as from the appointed day mentioned above.

10. The Janana Bharathi Trust – The Merging Trust, shall stand dissolved and the Trustees of the merging Trust stand relived of all their obligations under the Deed of Trust dated 17-04-1979 of Merging Trust subject to their fulfilling all their obligations set out herein above.”

7. A perusal of the same would leave no doubt that Jnanabharathi Trust which was a existing Trust has thro