The Supreme Court has directed the Centre to refrain from insisting that the state of Kerala withdraw its suit under Article 131.Previously, Kerala had filed an original suit against the Union of India in the Supreme Court, citing that the Centre had imposed limits on the state's borrowing capacity.

 

The State Government expressed concern that this reduction in borrowing limits could potentially result in a severe financial crisis in Kerala. The bench clarified that while the Union can set other conditions that are in line with the Constitution, the demand for the suit to be withdrawn is not permissible.