The State Of Kerala vs Union Of India

The Supreme Court addressed the Original Suit filed by the State of Kerala against the Union of India under Article 131 of the Constitution, challenging the imposition of a Net Borrowing Ceiling as per the Fiscal Responsibility and Budget Management Act, 2003. The Court examined whether the Union exceeded its powers under Article 293, which governs state borrowing. The Court held that the actions of the Union were within constitutional limits, denying the interim injunction sought by the State to restore previous borrowing conditions and allow immediate borrowing of INR 26,226 crores.