Supreme Court Refers Kerala's Suit Against Union Over Borrowing Limits To Constitution Bench, Refuses Interim Relief
11 months, 3 weeks ago

Supreme Court Refers Kerala's Suit Against Union Over Borrowing Limits To Constitution Bench, Refuses Interim Relief

Live Law  

The Supreme Court on Monday referred the suit filed by the State of Kerala against the Union of India challenging the limits imposed on the State's borrowing capacities to a 5-judge Constitution Bench in terms of Article 145 of the Constitution.At the same time, however, the bench, comprising Justices Surya Kant and KV Viswanathan, refused to pass orders on the interim relief. The Supreme Court on Monday referred the suit filed by the State of Kerala against the Union of India challenging the limits imposed on the State's borrowing capacities to a 5-judge Constitution Bench in terms of Article 145 of the Constitution. At the same time, however, the bench, comprising Justices Surya Kant and KV Viswanathan, refused to pass orders on the interim relief sought by the State for additional borrowing for the financial year 2023-24. Central to Kerala's grievances were concerns over a lowered borrowing limit imposed by the Union, potentially precipitating a severe financial crisis with the state urgently requiring around Rs 26,000 crore to meet its financial obligations.

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History of this topic

States and the Centre’s fetter of ‘net borrowing ceiling’
4 months, 1 week ago

States and the Centre’s fetter of ‘net borrowing ceiling’

The Hindu  

The central government, in 2023, imposed a ‘Net Borrowing Ceiling’ on the State of Kerala to restrict the maximum possible borrowing that the State can make under the law. As in Article 293, the Government of India may grant loans to any State subject to conditions laid down by any law made by Parliament up to the limits fixed under …

Ceiling on net borrowing: SC to set up five-judge bench to hear Kerala’s plea against Centre
6 months, 3 weeks ago

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

The Hindu  

Kerala government in the Supreme Court on Friday made an oral mentioning about the formation of a Constitution Bench to examine whether a State has an “enforceable right” to raise its borrowing limits over and above the cap fixed by the Union government. The court had also referred to the Constitution Bench the issue of whether financial restrictions introduced by …

What is Kerala’s fiscal autonomy suit all about? | In Focus podcast
11 months, 1 week ago

What is Kerala’s fiscal autonomy suit all about? | In Focus podcast

The Hindu  

Is it okay for the Union government to impose limits on how much a State government can borrow? This question, raised by the Kerala government, has been referred to a Constitution Bench by the Supreme Court. The key constitutional question that the Supreme Court wants a five-judge bench to decide is: whether ‘fiscal decentralistion’ is an integral aspect of Indian …

Fiscal battle: On borrowings and Kerala’s suit
11 months, 2 weeks ago

Fiscal battle: On borrowings and Kerala’s suit

The Hindu  

The Supreme Court of India order referring a suit filed by Kerala, challenging the Centre’s decisions curtailing its borrowings, to a Constitution Bench is a welcome development. The Court declined to grant an interim order to restore the position prior to the imposition of borrowing limits by the Centre, but the referral will give a larger Bench an opportunity to …

SC blames Kerala for its financial woes, rejects state's request for additional borrowing
11 months, 2 weeks ago

SC blames Kerala for its financial woes, rejects state's request for additional borrowing

Op India  

On Monday, the Supreme Court rejected Kerala’s request for immediate relief, attributing the state’s financial woes to its mishandling of funds. Kerala’s plea for increased borrowing was turned down, and the court referred the state’s challenge against the Centre’s borrowing restrictions to a Constitution bench for further scrutiny. The court’s observation of financial mismanagement within the state countered LDF’s claims …

SC refers to Constitution Bench Kerala suit against Centre’s shackles on States’ borrowing powers
11 months, 3 weeks ago

SC refers to Constitution Bench Kerala suit against Centre’s shackles on States’ borrowing powers

The Hindu  

The Supreme Court on Monday referred to a Constitution Bench the question raised by Kerala whether a State has an “enforceable right” to raise its borrowing limits from the Union government and other sources. The court wants a five-judge Bench to decide important questions of law, including whether “fiscal decentralisation” was an aspect of Indian federalism and if Central regulations …

Supreme Court reserves order on Kerala’s borrowing limit challenge
1 year ago

Supreme Court reserves order on Kerala’s borrowing limit challenge

Live Mint  

The Supreme Court has reserved its judgment in the case regarding borrowing limits between the Union government and the state of Kerala. Kerala filed the suit against the Centre under Article 131 of the Constitution, contesting the Union's norms on borrowing limits and highlighting the unique financial landscape of the state. Senior advocate Kapil Sibal representing Kerala argued that the …

Supreme Court Reserves Verdict On Kerala's Plea For Interim Relief In Original Suit Challenging Centre's Borrowing Curbs
1 year ago

Supreme Court Reserves Verdict On Kerala's Plea For Interim Relief In Original Suit Challenging Centre's Borrowing Curbs

Live Law  

The Supreme Court on Friday reserved its verdict on the State of Kerala's plea for interim relief in its original suit challenging the Union of India's borrowing curbs.The plea was heard by a bench of Justices Surya Kant and KV Viswanathan, which has been trying to find a solution to the state's urgent financial needs before the end of the …

SC urges Centre to rescue Kerala with one-time package before Mar 31
1 year ago

SC urges Centre to rescue Kerala with one-time package before Mar 31

Hindustan Times  

The Supreme Court on Tuesday urged the Centre to consider rescuing Kerala from its severe financial crisis with a special package in the current fiscal year even as the Centre maintained that as a matter of principle, bailout packages were turned down for other states too. See if you can be slightly liberal in relaxing your norms and give a …

Allow Additional Borrowing By Kerala Before March 31 As One Time Measure Subject To Adjustment Next FY : Supreme Court Urges Union
1 year ago

Allow Additional Borrowing By Kerala Before March 31 As One Time Measure Subject To Adjustment Next FY : Supreme Court Urges Union

Live Law  

The Supreme Court on Tuesday urged the Union Government to relax the borrowing limits for the State of Kerala for the current financial year before March 31, 2024 as a one-time measure as a special case. The Court suggested that more rigid conditions can be imposed for the next financial year.Additional Solicitor General for India N Venkataraman, despite raising initial …

Centre rejects state’s demand for Rs 19,370 crore additional borrowing
1 year ago

Centre rejects state’s demand for Rs 19,370 crore additional borrowing

New Indian Express  

THIRUVANANTHAPURAM : Once again, the Kerala government will move the Supreme Court against the Union government as the latter has rejected the demand for borrowings worth Rs 19,370 crore, in addition to the Rs 13,608 crore ordered by the Supreme Court. The talks between the Union and state governments on the issue of additional borrowing space were held in Delhi …

Centre dismisses Kerala’s request to borrow additional ₹19,370 crore
1 year ago

Centre dismisses Kerala’s request to borrow additional ₹19,370 crore

Hindustan Times  

The Centre declined the request of Kerala government to borrow an additional ₹19,370 crore in the current fiscal year in the discussions held with Union finance ministry officials in New Delhi on Friday, the state’s chief secretary V Venu said. Officials from Kerala led by the chief secretary had met Union finance ministry officials in Delhi following the directions of …

Supreme Court advises Kerala to take ₹13,608 crore offered by Centre
1 year ago

Supreme Court advises Kerala to take ₹13,608 crore offered by Centre

The Hindu  

The Supreme Court on Wednesday nudged Kerala to meet the Centre’s team a second time and accept the ₹13,608 crore on offer to tide over the immediate financial emergency looming in the State. Accept the conditions, except withdrawal of this suit filed in the Supreme Court, to resolve the immediate emergency,” Justice Surya Kant, heading a Bench comprising Justice K.V. …

SC issues summons to Centre on Kerala’s suit alleging financial restrictions
1 year, 2 months ago

SC issues summons to Centre on Kerala’s suit alleging financial restrictions

The Hindu  

The Supreme Court on January 12 agreed to examine an original suit filed by Kerala alleging that the Centre was violating the federal structure of governance and causing “severe damage to the economy of a small State with meagre resources” by interfering with the finances of the State. It listed Kerala’s application for interim reliefs, which include an injunction order …

S.17 SARFAESI Act | Recovery Action May Have Disastrous Consequences For Borrower, DRT Must Pass Interim Order Upon Application Of Mind: Kerala HC
1 year, 9 months ago

S.17 SARFAESI Act | Recovery Action May Have Disastrous Consequences For Borrower, DRT Must Pass Interim Order Upon Application Of Mind: Kerala HC

Live Law  

The Kerala High Court recently held that interim orders passed by the Debts Recovery Tribunal under 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 cannot be issued mechanically and without application of mind. On Maintainability The Court held that in cases where the Tribunal has failed to exercise its jurisdiction properly, requiring …

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