Centre Open To Talks With Kerala On Issue Of Borrowing Limits : AG Tells Supreme Court

On Tuesday morning, the bench recommended that the finance secretary of Kerala engage in dialogue with the union finance minister to break the deadlock through negotiation. Agreeing to this suggestion, Senior Advocate Kapil Sibal, for the State of Kerala, indicated that the state secretary would be available for the conversation later in the day. The Attorney-General, on the other hand, requested the hearing to be postponed until 2 PM to seek instructions.

Justice Surya Kant stressed the importance of genuine initiative and dialogue in resolving the impasse. Before postponing the hearing, the judge said, "Let this not be an empty formality. Only when you think that there is a possibility...Only if some initiative will be there, then only we will request...And in case, you decide there can be a dialogue, then also identify who will be the appropriate authority. We will go by your suggestion."

When this matter was taken up again in the afternoon, AG Venkataramani informed the court, "The suggestion falling from the court has received the highest regard that it deserves. The government is open to a meeting. Let's keep it open without putting any...so that there is an open dialogue and whatever emerges out of it may pave the way for the way forward."

Concurring, Sibal said, "We will fly a delegation from Kerala by tomorrow morning. Unfortunately, the budget will be presented by the finance minister tomorrow and day after. Others will come so that the dialogue may start tomorrow."

"Whether the state or the Centre...There are seasoned administrators who have in their public life seen the world in different capacities. We are confident that you will be able to find a solution," Justice Kant said with optimism. 

"This is cooperative federalism in action," Justice Viswanathan chimed in, commending the union and Kerala governments for demonstrating their willingness to resolve the dispute over borrowing curbs through negotiation and dialogue.

Sibal assured, "This cooperation will continue at least on this end, that's for sure. We are deeply obliged."

At the end, the bench directed the matter to be listed on Monday, February 19 for directions. Justice Kant said, "We'll not hear it on merits. We will fix a date on Monday."

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