A bench of Chief Justice G Rohini and Justice RS Endlaw asked the Ministry of Law and Justice and EC to conduct a study and see if such a provision as recommended by the LC in its 170th report can be enacted and whether the high court can direct the poll panel to do so.
The court has listed the matter for further hearing on August 20.
It has alleged that such a provision has "deliberately" not been enacted despite Supreme Court having held that EC has the power to give effect to the LC's recommendation.
ADR has claimed that the existing law "does not measure up to the existing realities".
"The ceiling on expenditure is fixed only in respect of the expenditure incurred or authorised by the candidate himself, but the expenditure incurred by the party or anyone else on his election campaign is safely outside the net of legal sanction.
Advocate Sumeet Pushkarna appeared for the Law Ministry.
