UNION OF INDIA vs STATE OF RAJASTHAN

The Supreme Court held that Article 131 of the Constitution of India is applicable only to disputes arising between States and the Union in the context of their constitutional relationship. The Court ruled that a suit filed by a State against the Union for damages due to loss of goods transported by rail does not fall under the exclusive jurisdiction of the Supreme Court as it does not pertain to the discharge of executive powers. Consequently, the District Court has jurisdiction to entertain such a suit, affirming the lower court's decision.