Article 360 of the Constitution of India

has arisen whereby the financial stability or credit ofIndia or of any part of the territory thereof is threatened,he may by a Proclamation make a declaration to thateffect. 4[(2) A Proclamation issued under clause (1)— (a) may be revoked or varied by a subsequent Proclamation;Provisions as tofinancialemergency. 1Ins. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 40 (w.e.f. 20-6-1979). 2Ins. by the Constitution (Forty-second Amendment) Act, 1976, s. 53 (w.e.f. 3-1-1977). 3Ins. by the Constitution (Fifty-ninth Amendment) Act, 1988, s. 3. It shall cease to operate on the expiry of a period of two years from the commencement of this Act, i.e., thirtieth day of March, 1988. 4Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 41, for cl. (2) (w.e.f. 20-6-1979).THE CONSTITUTION OF INDIA (Part XVIII. —Emergency Provisions.—Arts. 359—360.)228 (b) shall be laid before each House of Parliament; (c) shall cease to operate at the expiration of two months, unless before the expiration of that periodit has been approved by resolutions of both Housesof Parliament: Provided that if any such Proclamation is issued at a time when the House of the People has been dissolvedor the dissolution of the House of the People takes placeduring the period of two months referred to in sub-clause ( c), and if a resolution approving the Proclamation has been passed by the Council of States, but noresolution with respect to such Proclamation has beenpassed by the House of the People before the expirationof that period, the Proclamation shall cease to operate atthe expiration of thirty days from the date on which theHouse of the People first sits after its reconstitution unlessbefore the expiration of the said period of thirty days aresolution approving the Proclamation has been alsopassed by the House of the People.] (3) During the period any such Proclamation as is mentioned in clause (1) is in operation, the executiveauthority of the Union shall extend to the giving ofdirections to any State to observe such canons of financialpropriety as may be specified in the directions, and to thegiving of such other directions as the President may deemnecessary and adequate for the purpose. (4) Notwithstanding anything in this Constitution— (a) any such direction may include— (i) a provision requiring the reduction of salaries and allowances of all or any class ofpersons serving in connection with the affairs ofa State; (ii) a provision requiring all Money Bills or other Bills to which the provisions of article 207apply to be reserved for the consideration of thePresident after they are passed by the Legislatureof the State;THE CONSTITUTION OF INDIA (Part XVIII. —Emergency Provisions.—Art. 360.)229 (b) it shall be competent for the President during the period any Proclamation issued under this articleis in operation to issue directions for the reduction ofsalaries and allowances of all or any class of personsserving in connection with the affairs of the Unionincluding the Judges of the Supreme Court and theHigh Courts. 1* * * * * 1Cl. (5) was ins. by the Constitution (Thirty-eighth Amendment) Act, 1975, s. 8 (retrospectively) and omitted by the Constitution (Forty-fourth Amendment) Act, 1978,s. 41 (w.e.f. 20-6-1979).THE CONSTITUTION OF INDIA (Part XVIII. —Emergency Provisions.—Art. 360.)230