Today(on 14th May),Supreme Court assures Kerala’s net borrowing ceiling lawsuit will be prioritized before a five-judge bench, responding to urgency expressed by senior advocate Kapil Sibal.
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NEW DELHI: Today(on 14th May),The Supreme Court has assured the Kerala government that its lawsuit against the Centre, which raises concerns about the ceiling on net borrowing, will receive due consideration for listing before a five-judge Constitution bench. This assurance was provided by a bench consisting of Justice Sanjiv Khanna and Justice Dipankar Datta. The court took note of the urgency expressed by senior advocate Kapil Sibal, representing the state government, and agreed to schedule the matter after the summer vacation.
“We will assess and make a decision regarding listing.”
– Justice Khanna informed Sibal, indicating the court’s willingness to address the matter promptly.
Previously, on April 1, a bench comprising Justices Surya Kant and K V Viswanathan had referred the lawsuit filed by the Kerala government to a five-judge Constitution bench. The primary concern raised in the lawsuit was the ceiling imposed on net borrowing. However, the apex court declined to grant any interim injunction to Kerala, citing that the state had already obtained significant relief during the pendency of the interim application.
The Kerala government alleges that the Centre is infringing upon its “exclusive, autonomous, and full powers” to oversee the state’s finances through the imposition of a borrowing limit. The case highlights Article 293 of the Constitution, which addresses state borrowing. The Supreme Court observed that this provision has not received any definitive interpretation from the highest court.
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The decision to refer the matter to a larger bench signifies the importance and complexity of the issues at hand. By involving a five-judge Constitution bench, the Supreme Court aims to provide a comprehensive and well-considered ruling on the matter. The interpretation and subsequent judgment on Article 293 will have far-reaching implications for the financial autonomy of states.
The Kerala government’s petition raises fundamental inquiries regarding the extent of the Centre’s jurisdiction in overseeing state finances and the constraints it can enforce on borrowing. The verdict in this matter will impact not only Kerala’s fiscal strategies but also those of other states across the nation.
The involvement of senior advocate Kapil Sibal further highlights the significance of the matter. Known for his expertise in constitutional law, Sibal’s representation adds weight to the arguments put forth by the Kerala government.
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While the Kerala government anticipates the listing of its lawsuit before the five-judge Constitution bench, legal experts and financial analysts are closely monitoring the proceedings. The Supreme Court’s ruling will not only impact Kerala’s borrowing limits but also set precedents and frameworks for future disputes between states and the Centre regarding financial matters.
