The Supreme Court docket on Monday referred to a five-judge Structure bench the swimsuit filed by the Kerala authorities elevating the problem of a ceiling on internet borrowing.
A bench of Justices Surya Kant and Okay V Viswanathan handed the order on the state’s swimsuit, accusing the Centre of interfering in exercising its “unique, autonomous and plenary powers” to control the state’s funds by imposing a cap on borrowing.
The bench referred to Article 293 of the Structure, which offers with borrowing by states, and stated this provision has not been up to now topic to any authoritative interpretation by the apex courtroom.
In an authentic swimsuit filed beneath Article 131 of the Structure, the Kerala authorities stated the Structure bestows fiscal autonomy upon states to control their funds beneath numerous articles, and state laws regulates the borrowing limits or the extent of such borrowings.
Article 131 of the Structure offers with the apex courtroom’s authentic jurisdiction in any dispute between the Centre and states.