IMPORTANT POINT
The court allowed the merger of two trusts under Section 7 of the Charitable and Religious Trusts Act, 1920, finding commonality in their objectives and ensuring effective administration.

JUDGMENT :

1. This matter was finally heard before the change in determination. An order was also dictated and made over to the advocate representing the monks of Ramakrishna Math, Belur as also those of the Sri Sri Ramkrishna Kathamrita Trust for providing the correct names as the spellings were in variance at different portions of the petition. The matter, therefor, was retained in the list of this bench with the consent of the parties despite change in determination of this bench.

2. This is an application under Section 7 of the Charitable and Religious Trusts Act, 1920 (hereinafter referred to as the “said Act”) made jointly by the trustees of two trusts which have been created for public purposes of a charitable and religious nature. By the said application, the two trusts namely Ramakrishna Math, Belur commonly known as Belur Math and Sri Sri Ramkrishna Kathamrita Trust (hereinafter for the sake of convenience referred to as “Kathamrita Trust”) have sought a direction from this Court permitting merger of Kathamrita Trust with Belur Math in a manner that on the proposal being approved by this Court all assets and properties of Kathamrita Trust will vest in Belur Math and there will be no separate existence of the said Kathamrita Trust. The trustees of the Belur Math will administer the properties so vested to fulfill the object of Kathamrita Trust in future.

3. Merger of trusts is rare but not unheard of. It is done in the same line as a corporate amalgamation/merger takes place with the difference that in case of amalgamation of Company(s), one or more Company(s) called transferor company/companies will transfer all their properties and assets as also liabilities as per a scheme to another company identified as Transferee company. The transferee company is a new entity either having sufficient authorized share capital or may have to increase the same to allot shares in the transferee company to the share holder of the transferor company/companies. The transferee company/companies will lose their respective individual existence. In case of merger a unit or a division of one or more company(s) (transferor company(s)) is transferred with all its assets, properties and liabilities to a transferee company as per a scheme to a transferee company where the transferor company(s) remains to exist and no new entity in the form of a transferee company is created as in case of amalgamation. The transfer and the transferee company/companies continue to exist independently. This is done for effectual operation of the company(s) and allowed if the object of the transferor and the transferee company are common.

4. In the event, the Court finds that there is commonality in the object of the two trusts, there is no legal embargo for allowing the vesting of the properties and assets of one trust (transferor) into the other being the transferee consequent upon which the transferor trust will lose its separate existence and there is necessity for doing so to encourage effective functioning of the two trusts, the Court can allow such merger.

5. In the instant case, Kathamrita Trust, a Debuttar trust (the transferor) was created under a registered deed of trust executed and settled by Mahendra Nath Gupta (the settlor) to secure a permanent location for the emblem and relics of Sri Sri Ramakrishna and Holy mother Saradamoni Devi and to perform daily seva of the said emblem and relics in the dwelling house of the said Mahendra Nath Gupta situated at 13/2 Guru Prasad Chowdhury’s Lane, Kolkata 700006. The said Mahendra Nath Gupta for the fulfillment of such object dedicated certain properties movable and immovable, the particulars whereof are provided in the schedule hereinunder written.

“THE SCHEDULE ABOVE REFERRED TO

Part – I

ALL THAT partly two and partly three storied brick built messuage or dwelling house together with the piece or parcel of revenue-redeemed land comprised in holding No. 886 Block No.XIV in the Northern Division of the town of Calcut