Describing the decision as a "brazen display of high- handedness and authoritarianism", Rawat filed a petition in the Uttarakhand High Court seeking quashing of the Presidential proclamation.
However, Union Finance Minister Arun Jaitley put the blame squarely on the Congress for the "Constitutional crisis" in the state and accused the Speaker of declaring as passed a "defeated" appropriation bill and then failing to certify the "falsehood".
Rawat's petition came up before the single bench of Justice U C Dhyani, who after hearing both sides for close to four hours, said the matter would be taken up again tomorrow.
"Invocation of Art 356 of the Constitution in Uttarakhand is absolutely illegal, arbitrary and malafide and therefore its invocation should be quashed and Harish Rawat government restored," senior Supreme Court counsel Abhishek Manu Sanghvi contended before the petition.
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Questioning the timing of the move, Singhvi said it was meant to sabotage the Constitutional process.
MLAs who went along with Rawat included 26 of the Congress, five of the Progressive Democratic Front(PDF) and one nominated member of the state Assembly. A letter claiming support of 34 MLAs was also handed over to the Governor.
Govind Singh Kunjwal, the Speaker of the state Assembly, which is now in suspended animation, was not part of the MLAs who met the Governor while PDF member Sarbat Karim Ansari was absent due to personal reasons.
Nine party rebels, who had revolted against the Rawat government were disqualified by Speaker yesterday, reducing the effective strength of the House to 61 from 70.