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Kerala had refused to accept financial assistance from the Union government saying, "They say we are not entitled to borrow..and suit should be dismissed. 5000 crores will not take us anywhere..the absolute minimum we want is 10000 crores.."
A mentioning was made today on behalf of the State of Kerala before the Chief Justice of India requesting to list its original suit alleging interference by the Union in its borrowings.
Noting that the instant suit raised questions of interpretation of Articles 131 and 293, the top court had in April said that these questions fell within the ambit of Article 145 and have to be heard by a five-judge constitution bench.
Accordingly, Senior Advocate Kapil Sibal submitted today that the Registrar did not accept his note to list the case and asked for the CJI's directions on the same.
"Registrar said that he will not send an email because these are matters of an original suit. Therefore, I am saying milords, just look at it...", Sibal added.
A division bench of the Supreme Court had earlier this year refused to allow the prayer for interim relief made by the State of Kerala in its original suit. The balance of convenience at this stage lies in the favour of Union of India, observed a bench of Justices Surya Kant and KV Vishwanathan.
Kerala had refused to accept the Union's help of INR 5000 crores, after which the court had decided to hear the prayer for interim relief.
Court had asked the Central government to help out Kerala with its borrowing needs as a special case. "You can be slightly liberal and give a one-time package as a special case..add more rigid conditions in future budgets", the bench had said.
The Kerala government had submitted before the Supreme Court of India that it was in a state of emergency with regard to its financial conditions. Court was earlier informed by Attorney General R Venkataramani that Central Government was open to talks with the Kerala government on the issue of Borrowing Ceiling imposed on the State by the Centre. Kerala government had then also agreed to send a delegation to have a face-to-face with representatives of the central government.
Kerala has submitted that the Union has imposed a Net Borrowing Ceiling on the State in the manner deemed fit by it, which limits borrowings from all sources including open market borrowings and by further reducing the Net Borrowing Ceiling by including aspects into the “borrowing” of the State which, otherwise, are not “borrowings” as contemplated under Article 293 of the Constitution.
Case Title: State of Kerala vs. Union of India
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