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Regulatory BodyCompany Rule
‘Governor-General of Bengal’ and It made the governors of Bombay and Madras presidencies subordinate to the governor-general of Bengal.
The journey of constitution-making in British India is a fascinating tale that reflects the evolving political landscape and the growing demands for representation and rights among Indians. From the early legislative frameworks established by the British to the eventual drafting of the Constitution of India, each step played a crucial role in shaping the democratic foundations of the country. Hence the Knowledge of these events will help us greatly in understanding the basics of our Constitution and its Importance
The British came to India in 1600 as traders, in the form of East India Company, which had the exclusive right of trading in India under a charter granted by Queen Elizabeth. In 1765, the Company, which till now had purely trading functions obtained ‘diwani’ (i.e., rights over revenue and civil justice) of BBO. This started its career as a territorial power. In 1858, in the wake of the ‘mutiny’, the British Crown assumed responsibility for the governance of India. This rule continued until India was granted independence on August 15, 1947.
With Independence came the need for a Constitution. Hence, a Constituent Assembly was formed for this purpose in 1946 and on January 26, 1950, the Constitution came into being. However, various features of the Indian Constitution and polity have their roots in the British rule. There were certain events in the British rule that laid down the legal framework for the organisation and functioning of government and administration in British India. These events have greatly influenced our constitution and polity. They are explained here in a chronological order under two major headings :
1. The Company Rule (1773 – 1858) : These acts were made to control the Affairs of EIC from 1773 up till 1858
2. The Crown Rule (1858 – 1947) : These acts were made to control the Affairs of British India from 1858 up till 1947
The Acts from 1773 will be studied based on various parameters like (1) Background (2) Changes made in Company (3) Changes made in administration of India (4) Changes made in Legislation of India (5) Any other Changes if Any
Introduction and Background
By the early 1770s, the East India Company faced severe financial difficulties due to widespread mismanagement and corruption among its officials in India.
1. The 1770 Bengal famine led to millions of deaths, a severe economic downturn, reduced agricultural productivity, declining tax revenues, and disrupted trade.
2. Robert Clive’s Dual administration was complicated and unpopular. The company held Diwani rights (tax collection) in Bengal, while the Nawab had Nizamat rights (judicial and policing). However, the company controlled both powers, neglecting farmers and public welfare to focus solely on revenue.
3. The East India Company was in debt to both the Bank of England and the government, with millions of pounds of tea rotting in British warehouses and more on the way from India.
Provisions
Company
1. Regulating the Companies political and administrative functions Court of Directors (governing body of the Company) now had to report on its revenue, civil, and military affairs in India
2. It prohibited the servants of the Company from engaging in any private trade
3. The Regulating Act 1773 limited the company’s dividends to 6% until it repaid a government loan.
Administration
1. It designated the Governor of Bengal as
2. Created Executive Council of four members to assist Governor General. Similar things were done for Bombay and Madras.
3. Ended the dual Form of Government in Bengal
Legislation
No Changes were made. Governor General and its Executive Council continued to make laws. Thus it should be clear that the Executive Council is Performing legislative Functions as well for now.
Other Features
It provided for the establishment of a Supreme Court at Calcutta (1774) comprising chief justice and other judges.
Significance
The Regulating Act 1773 is regarded as a landmark because it resulted in numerous dynamic and significant changes to the country’s judiciary structure. The Regulating Act of 1773 was significant for several reasons:
⚬ First Step Towards Parliamentary Control: The Regulating Act 1773 was the first step taken by the British government to control and regulate the affairs of the East India Company in India, laying the groundwork for future legislative interventions.
⚬ Recognition of Company’s Function: For the first time, it recognised the Company’s political and administrative functions.
⚬ Judicial Reforms: The establishment of the Supreme Court was a critical step in introducing a legal framework in India based on British law, which influenced the evolution of the Indian judicial system.
⚬ Centralisation of Power: The establishment of the Governor-General position and the centralisation of authority in Bengal paved the way for more unified and structured governance of British territories in India.
Drawbacks
Despite the introduction of reforms and improved governance, the Regulating Act 1773 encountered various challenges that hindered its effectiveness and created new issues within the Company’s rule in India.
⚬ Governor-General’s Lack of Veto Power: The Regulating Act 1773 did not grant the Governor-General veto authority, leaving him vulnerable to being frequently overruled by the majority decisions of his council members.
⚬ Unclear Jurisdiction of the Supreme Court: The Regulating Act 1773 failed to clearly outline the powers and jurisdiction of the Supreme Court at Fort William, causing confusion and conflicts over authority between the Governor-General and the Supreme Court.
⚬ Neglect of Indian Interests: The Regulating Act 1773 failed to address the concerns of the Indian population, particularly those who paid taxes to the East India Company, leaving their problems unresolved and their interests ignored.
⚬ Weakened Regional Governance: By centralising power in the Governor-General, the Regulating Act 1773 diminished the authority and effectiveness of the governors in the Bombay and Madras presidencies, leading to administrative inefficiencies and corruption.
⚬ Limited Parliamentary Oversight: The Regulating Act 1773 did not give Parliament sufficient powers to scrutinise the Governor-General’s reports effectively, potentially limiting transparency and accountability in India’s administration.
Introduction and Background
One of the biggest problems created by the Regulating Act was the tussle between the Supreme Court and the Governor General in Council. This problem was solved by curtailing several powers of the Supreme Court in favour of the Governor General in Council.
Provisions
1. It provided immunity to Governor-General and the Council from the Supreme Court’s jurisdiction over their official acts. Similarly, it exempted the company’s servants from Supreme Court jurisdiction for official actions.
2. It excluded revenue matters and revenue collection issues from the Supreme Court’s jurisdiction.
3. It stated that the Supreme Court would have jurisdiction over all inhabitants of Calcutta only.
4. It also required the court to apply the defendants’ personal law, which meant that Hindus would be tried under Hindu law and Muslims under Mohammedan law.
5. The Governor-General-in-Council was granted the authority to establish regulations for the Provincial Courts and Councils. It also stated that appeals from Provincial Courts could be directed to the Governor-General-in-Council rather than the Supreme Court.
Introduction and Background
The Pitt’s India Act was introduced during the tenure of Lord Waren Hastings against the backdrop of growing concerns about the East India Company’s mismanagement and corruption in India. Several factors contributed to the need for this legislation:
⚬ Increasing Oversight of Crown: The East India Company had shifted from a trading entity to a ruling power, raising doubts about its ability to govern. William Pitt the Younger introduced this legislation to give the British government more control over Indian affairs.
⚬ Failures of the Regulating Act of 1773: The previous act had not effectively curbed the Company’s excesses or provided adequate oversight. Further, the East India Company was facing severe financial difficulties, necessitating a government bailout.
⚬ Military Setbacks: The Company had suffered defeats in conflicts with Indian powers, particularly in the First Anglo-Maratha War (1775-1782).
Provisions
Company
1. Regulating the Companies political and administrative functions Court of Directors (governing body of the Company) now had to report on its revenue, civil, and military affairs in India
2. It prohibited the servants of the Company from engaging in any private trade
3. The Regulating Act 1773 limited the company’s dividends to 6% until it repaid a government loan.
Administration
1. It designated the Governor of Bengal as the ‘Governor-General of Bengal’ and It made the governors of Bombay and Madras presidencies subordinate to the governor-general of Bengal.
2. Created Executive Council of four members to assist Governor General. Similar things were done for Bombay and Madras.
3. Ended the dual Form of Government in Bengal
Legislation
No Changes were made. Governor General and its Executive Council continued to make laws. Thus it should be clear that the Executive Council is Performing legislative Functions as well for now.
Other Features
It provided for the establishment of a Supreme Court at Calcutta (1774) comprising chief justice and other judges.
Significance
The Regulating Act 1773 is regarded as a landmark because it resulted in numerous dynamic and significant changes to the country’s judiciary structure. The Regulating Act of 1773 was significant for several reasons:
⚬ First Step Towards Parliamentary Control: The Regulating Act 1773 was the first step taken by the British government to control and regulate the affairs of the East India Company in India, laying the groundwork for future legislative interventions.
⚬ Recognition of Company’s Function: For the first time, it recognised the Company’s political and administrative functions.
⚬ Judicial Reforms: The establishment of the Supreme Court was a critical step in introducing a legal framework in India based on British law, which influenced the evolution of the Indian judicial system.
⚬ Centralisation of Power: The establishment of the Governor-General position and the centralisation of authority in Bengal paved the way for more unified and structured governance of British territories in India.
Drawbacks
Despite the introduction of reforms and improved governance, the Regulating Act 1773 encountered various challenges that hindered its effectiveness and created new issues within the Company’s rule in India.
⚬ Governor-General’s Lack of Veto Power: The Regulating Act 1773 did not grant the Governor-General veto authority, leaving him vulnerable to being frequently overruled by the majority decisions of his council members.
⚬ Unclear Jurisdiction of the Supreme Court: The Regulating Act 1773 failed to clearly outline the powers and jurisdiction of the Supreme Court at Fort William, causing confusion and conflicts over authority between the Governor-General and the Supreme Court.
⚬ Neglect of Indian Interests: The Regulating Act 1773 failed to address the concerns of the Indian population, particularly those who paid taxes to the East India Company, leaving their problems unresolved and their interests ignored.
⚬ Weakened Regional Governance: By centralising power in the Governor-General, the Regulating Act 1773 diminished the authority and effectiveness of the governors in the Bombay and Madras presidencies, leading to administrative inefficiencies and corruption.
⚬ Limited Parliamentary Oversight: The Regulating Act 1773 did not give Parliament sufficient powers to scrutinise the Governor-General’s reports effectively, potentially limiting transparency and accountability in India’s administration.