Article 360 of the Costitution of India with Case law
Article 360 of the Constitution of India
Title: Provisions as to Financial Emergency
🔍 Full Text Summary of Article 360:
(1) If the President is satisfied that a situation has arisen whereby the financial stability or credit of India or any part of its territory is threatened, he may declare a Financial Emergency by proclamation.
(2) The proclamation:
Must be laid before both Houses of Parliament.
Ceases to operate after 2 months, unless approved by both Houses.
(3) During a Financial Emergency:
The executive authority of the Union extends to giving directions to any State.
The President may direct the reduction of salaries and allowances of:
Persons serving in connection with the affairs of the Union.
Judges of the Supreme Court and High Courts.
(4) The President may direct that all Money Bills or Financial Bills require his prior approval before introduction in any State Legislature.
🧾 Key Features:
| Provision | Description |
|---|---|
| Declaration | By President if India's financial stability is threatened |
| Parliamentary Approval | Required within 2 months |
| Impact | Control over State finances, reduction in salaries, and increased Union power |
| Duration | No time limit once approved (unlike President’s Rule or National Emergency) |
⚖️ Case Laws & Judicial View:
🔹 Minerva Mills Ltd. v. Union of India (1980)
AIR 1980 SC 1789
Though this case focused on emergency powers and constitutional amendments, it reinforced the basic structure doctrine.
Relevance to Article 360: Any Financial Emergency declared under Article 360 must not violate fundamental rights or alter the basic structure of the Constitution.
🔹 S.R. Bommai v. Union of India (1994)
AIR 1994 SC 1918
Though this case dealt with Article 356 (President’s Rule), the Supreme Court emphasized judicial review of the President's satisfaction in declaring emergencies.
Relevance: The logic applies to Article 360 as well. If a Financial Emergency is declared malafide or arbitrarily, it may be subject to judicial review.
🔹 Kesavananda Bharati v. State of Kerala (1973)
AIR 1973 SC 1461
This landmark case established the basic structure doctrine.
Implication: Even during emergencies, financial powers under Article 360 cannot destroy federalism or judicial independence (e.g., by misusing power to cut judges’ salaries arbitrarily).
✅ Important Note:
As of June 2025, **Article 360 has never been invoked in India's history — unlike Articles 352 (National Emergency) and 356 (President's Rule).
📘 Related Articles:
| Article | Subject |
|---|---|
| 352 | National Emergency |
| 356 | President’s Rule |
| 365 | Effect of failure to comply with Union directions |
| 110 | Definition of Money Bill |
| 112–117 | Budget and financial procedure |
🧠 Impact of Financial Emergency (if declared):
| Area | Effect |
|---|---|
| Centre-State Relations | Union may direct States on financial matters |
| Government Employees | Salaries and allowances may be reduced |
| Judiciary | Even Judges’ salaries may be cut |
| Legislative Process | Money Bills in States need President’s approval |
✅ Conclusion:
Article 360 is a preventive and corrective mechanism in the Constitution designed to protect India’s financial integrity. While never invoked, its existence acts as a constitutional safeguard for national fiscal stability.
However, its implementation would centralize financial control, affect State autonomy, and weaken separation of powers, hence it is to be used only in extreme situations.
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