SC's Triple Test for Mandatory Injunction Quiz

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What role did the 15th Finance Commission's recommendations play in Kerala's argument for additional borrowing?

Support for the Union's decision to limit Kerala's borrowing

Evidence of over-borrowing in previous years

Justification for borrowing up to the maximum permissible fiscal deficit (correct)

Argument against the need for additional borrowing

What was the primary reason for the Union contesting Kerala's bid for additional borrowing?

To encourage Kerala's economic growth

To reduce the fiscal deficit of Kerala

To support Kerala's financial independence

To maintain the fiscal health of the country (correct)

What was the reason behind the State of Kerala's financial hardship according to the Court?

Mismanagement of its own finances (correct)

Inadequate fiscal space

Strict adherence to fiscal policies

Lack of access to borrowings

What did the Court emphasize as the responsibility of the government?

Maintaining fiscal stability Signup and view all the answers

In the context of the Supreme Court ruling, what is the 'Triple-Test' principle for granting injunctions based on?

Prima facie case, balance of convenience, and irreparable injury Signup and view all the answers

What consequence did the Court mention if it issued interim mandatory injunctions in cases like this one?

Enabling States to flout fiscal policies successfully Signup and view all the answers

How do prohibitory injunctions differ from mandatory injunctions according to the Supreme Court's explanation?

Prohibitory injunctions restrain future actions while mandatory injunctions compel a positive step. Signup and view all the answers

What did the Union of India argue regarding the State of Kerala's fiscal space?

It has no unutilized fiscal space Signup and view all the answers

What evidence did the Union provide to counter Kerala's bid for additional borrowing?

Kerala's alleged over-borrowing in previous years Signup and view all the answers

What law guided the Court's decision-making regarding fiscal responsibility?

Kerala Fiscal Responsibility Act, 2003 Signup and view all the answers

Why did the Court refuse to issue an interim mandatory injunction?

To set a bad precedent in law Signup and view all the answers

Why did the Supreme Court rule against granting interim relief to Kerala in this case?

'Triple-Test' principle elements were not established by Kerala Signup and view all the answers

What is the first part of the 'Triple Test' for granting injunction orders?

Prima facie case Signup and view all the answers

The Supreme Court explained the Triple Test for granting which type of injunction?

Mandatory injunction Signup and view all the answers

Why did the Supreme Court deny Kerala's prayer for an interim injunction against the Union's Net Borrowing Ceiling?

Kerala failed to demonstrate fiscal space for borrowing post-adjustment of over-borrowings. Signup and view all the answers

What does 'Balance of convenience' refer to in the Triple Test for granting injunction orders?

Higher prejudice to the plaintiff if no relief is granted Signup and view all the answers

'Irreparable injury' in the 'Triple Test' implies what about the injury faced by the plaintiff?

Cannot be compensated in monetary terms Signup and view all the answers

What did the State of Kerala challenge in its lawsuit against the Central Government?

'Net Borrowing Ceiling' Signup and view all the answers

What was the main concern of Justice Surya Kant and Justice K.V.Vishwanathan regarding the grant of interim relief?

The adverse effects on the entire nation if the suit is eventually dismissed. Signup and view all the answers

Who represented the Plaintiff in the case against the imposition of a 'Net Borrowing Ceiling' by the Union?

Sr.Advocate Kapil Sibal and AG K.Gopalakrishna Kurup Signup and view all the answers

Why did the State of Kerala seek a mandatory injunction against the imposition of a 'Net Borrowing Ceiling' by the Union?

To increase the borrowing capacity that existed before such imposition. Signup and view all the answers

Who appeared for the defendant, Defendant – Union of India, in court?

R Venkatramani and ASG N Venkatraman Signup and view all the answers

What did Justice Surya Kant and Justice K.V.Vishwanathan emphasize as a consequence if the interim injunction is granted and the suit is eventually dismissed?

Difficulty in turning back the adverse effects on the entire nation at a large scale. Signup and view all the answers

What argument did the State of Kerala put forward regarding the power of the Union to regulate State borrowings?

The Union did not have the power to regulate all State borrowings. Signup and view all the answers