Ceiling on net borrowing: SC to set up 5-judge bench to hear Kerala’s plea against Centre

The Kerala government on Friday moved the Supreme Court seeking early setting up of a five-judge Constitution bench to hear its lawsuit against the Centre raising the issue of ceiling on net borrowing.

The state government has raised a question whether a State has an “enforceable right” to raise its borrowing limits from the Union government and other sources.

A bench comprising Chief Justice D Y Chandrachud and Justices JB Pardiwala and Manoj Misra was told by senior lawyer Kapil Sibal, appearing for the state government, that the matter was referred to a Constitution bench on April 1 and the apex court official was not sending an email for setting up of the bench.

“I will look into it,” the CJI said.

A bench of Justices Surya Kant and K V Viswanathan on April 1 had referred the matter to a five-judge Constitution bench and this can now be set up by the CJI by an administrative order.

The apex court, however, had refused to grant any interim injunction to Kerala, saying the state has secured “substantial relief” during the pendency of the interim application.

The bench had referred to Article 293 of the Constitution, which deals with borrowing by states, and said this provision has not been so far subject to any authoritative interpretation by the apex court.

“Since Article 293 of the Constitution has not been so far the subject to any authoritative interpretation by this court, in our considered opinion, the aforesaid questions squarely fall within the ambit of Article 145(3) of the Constitution. We, therefore, deem it appropriate to refer these questions for pronouncement by a bench comprising five judges,” it had said.