The Supreme Court of India is set to assemble a five-judge Constitution bench to deliberate on a critical issue raised by the Kerala government regarding the ceiling on net borrowing limits imposed by the Centre. The state has questioned whether it possesses an “enforceable right” to enhance its borrowing capacity from the Union government and other financial sources.
This legal move was initiated on Friday when the Kerala government, represented by senior lawyer Kapil Sibal, urged for an expedited formation of the Constitution bench. Sibal highlighted that the matter was referred to the bench on April 1, but procedural delays had prevented its setup.
Chief Justice D.Y. Chandrachud, along with Justices JB Pardiwala and Manoj Misra, acknowledged the urgency conveyed by Sibal, with the CJI remarking, “I will look into it.” The case had previously been directed to a five-judge bench by Justices Surya Kant and K.V. Viswanathan due to the constitutional implications of the borrowing limits.
The bench referred to Article 293 of the Indian Constitution, which governs state borrowing but has not yet been definitively interpreted by the Supreme Court. Given the lack of authoritative interpretation, the court found it necessary to explore this under Article 145(3) of the Constitution.
