SWAMI SMARANANANDA Vs. NIL

JUDGEMENT

(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 Sec. 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.