Supreme Court In Kerala's Suit: Is State's Financial Management Caused Hardship, It Is Not A Ground For Interim Relief Against Union

The Supreme Court in the case State of Kerala v. Union of India observed and has refused interim relief wherein allowing the State of Kerala to raise additional borrowing of Rs 10,722 crores for the financial year 2023-24.

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The court in the case observed that financial hardships created by a State's financial mismanagement cannot be a ground to seek interim relief.

The bench comprising of Justice Surya Kant and Justice KV Viswanathan in the case observed that if the State has essentially created financial hardship because of its own financial mismanagement, such hardship cannot be held to be an irreparable injury that would necessitate being an interim relief against Union.

The court in the case stated that if such an application filed wherein it seeks interim relief to raise additional borrowings is allowed, then it might set a bad precedent enabling the states to borrow more than the circumscribed limits.