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NEW DELHI: The Supreme Court’s two-judge bench on Monday in its order referred to a five judge constitution bench to adjudicate Kerala government’s plea challenging the Centre’s decision to put cap on the borrowing capacity of states. A two-judge bench of the top court, headed by Justice Surya Kant, comprising Justice K V Viswanathan, refused to pass any interim order and or direction on the plea of Kerala government’s plea.It noted in its order that that state received grant of Rs 13608 crore from Centre after filing of the present petition.The apex court in its order said it prima facie held that once a state over borrows from centre there can be reduction in the next payouts by the Union of India and that balance of convenience lies with the Union of India.The talks had been failed between Kerala and Centre, forcing the apex court to pass the order on the state’s plea seeking appropriate directions and or orders on the issue.
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SC refers Kerala govt’s suit to five-judge Constitution bench
