The Kerala government has asked the Supreme Court to quickly form a five-judge Constitution bench to hear its case against the central government regarding the ceiling on net borrowing. The state wants clarity on whether it has an “enforceable right” to raise its borrowing limits from the Union government and other sources.
Senior lawyer Kapil Sibal, representing Kerala, informed a bench led by Chief Justice D Y Chandrachud, along with Justices JB Pardiwala and Manoj Misra, that the matter was referred to a Constitution bench on April 1. However, the court’s administrative team has yet to take steps to set up the bench. The Chief Justice responded, “I will look into it.”
Previously, on April 1, Justices Surya Kant and K V Viswanathan had referred the issue to a five-judge Constitution bench, which the CJI can establish through an administrative order. The Supreme Court, however, declined to grant any interim relief to Kerala, noting that the state had already secured “substantial relief” while its application was pending.
The court highlighted Article 293 of the Constitution, which pertains to state borrowing, and pointed out that this provision has not yet been authoritatively interpreted by the Supreme Court. The bench stated that since the questions involved fall under the scope of Article 145(3) of the Constitution, it is appropriate for a five-judge bench to make a pronouncement on the matter.
