The Company Rule (1773-1858)
Regulating Act of 1773
Constitutional Importance:
- First Step by British Government: Initiated British control and regulation of East India Company affairs in India.
- Recognition of Company's Functions: Acknowledged the political and administrative roles of the East India Company.
- Foundation of Central Administration: Established the basis for central administration in India.
Key Features:
Governor-General of Bengal:
- Designated the Governor of Bengal as the 'Governor-General of Bengal'.
- Created an Executive Council of four members to assist the Governor-General.
- First Governor-General: Lord Warren Hastings.
Subordination of Bombay and Madras:
- Made Governors of Bombay and Madras presidencies subordinate to the Governor-General of Bengal.
Supreme Court at Calcutta (1774):
- Established a Supreme Court at Calcutta.
- Comprised one Chief Justice and three other judges.
Prohibition on Private Trade:
- Prohibited Company servants from engaging in private trade.
- Banned acceptance of presents or bribes from the natives.
Increased British Government Control:
- Required the Court of Directors (governing body of the Company) to report on revenue, civil, and military affairs in India to the British Government.
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Amending Act of 1781 (Act of Settlement):
Purpose:
- To Rectify defects of the Regulating Act of 1773.
Key Features:
Jurisdiction Exemption:
- Exempted the Governor-General and the Council from Supreme Court jurisdiction for official acts.
- Exempted Company servants from Supreme Court jurisdiction for official actions.
Revenue Matters:
- Excluded revenue matters and those arising from revenue collection from Supreme Court jurisdiction.
Supreme Court Jurisdiction:
- Jurisdiction over all inhabitants of Calcutta.
- Required Court to administer personal law of defendants:
- Hindus tried according to Hindu law.
- Muslims tried according to Mohammedan law.
Appeals:
- Appeals from Provincial Courts are to be taken to the Governor-General-in-Council, not the Supreme Court.
Regulation Powers:
- Empowered Governor-General-in-Council to frame regulations for Provincial Courts and Councils.
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Pitt's India Act of 1784:
Purpose:
- To improve the management of the East India Company's affairs and bring its administration under British government control.
Significance:
- The Company's territories in India were officially termed 'British possessions in India'.
Key Features:
Distinction of Functions:
- Distinguished between the commercial and political functions of the Company.
Management Structure:
- Allowed the Court of Directors to manage commercial affairs.
- Allowed the Board of Control to manage political affairs.
- Established a system of double government.
Powers of the Board of Control:
- Empowered to supervise and direct all operations of the civil and military government or revenues of the British possessions in India.
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Act of 1786:
Purpose:
- To facilitate Lord Cornwallis's appointment as the Governor-General of Bengal with specific powers and roles.
Key Features:
Overriding Council Decisions:
- Empowered the Governor-General to override the decision of his council in special cases.
Commander-in-Chief:
- Appointed the Governor-General as the Commander-in-Chief of the British military forces in India.
Significance:
- Strengthened the authority and decision-making power of the Governor-General in critical situations.
- Ensured unified command over civil and military administration under Lord Cornwallis.
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Charter Act of 1793:
Purpose:
- To extend and formalize administrative powers and financial arrangements in British India.
Key Features:
Extended Overriding Powers:
- Granted overriding power over the council, initially given to Lord Cornwallis, to all future Governor-Generals and Governors of Presidencies.
Commander-in-Chief Role:
- Specified that the Commander-in-Chief would not be a member of the Governor-General's council unless explicitly appointed.
Board of Control's Payment:
- Mandated that the members of the Board of Control and their staff be paid from Indian revenues.
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Charter Act of 1813:
Purpose:
- To reform and regulate the East India Company's trade and administrative practices.
Key Features:
Trade Monopoly Abolished:
- Ended the East India Company's monopoly over trade in India, opening Indian trade to all British merchants, except for the Company's monopoly on tea and trade with China.
Sovereignty Asserted:
- Reaffirmed the sovereignty of the British Crown over the Company's territories in India.
Missionary Activity:
- Permitted Christian missionaries to enter India to promote education and religious enlightenment.
Western Education:
- Provided for the spread of Western education among the inhabitants of British territories in India.
Taxation Authority:
- Authorized Local Governments in India to impose taxes on individuals and punish those who failed to pay.
Significance:
- Marked a shift towards more direct control and influence by the British Crown.
- Facilitated the introduction of Western education and Christian missionary work in India.
- Encouraged economic development by opening trade, while retaining some control over strategic trades.
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Charter Act of 1833:
Purpose:
- To further centralize administration and restructure the governance of British India.
Key Features:
Governor-General of India:
- Transformed the Governor-General of Bengal into the Governor-General of India.
- Lord William Bentick became the first Governor-General of India.
Legislative Centralization:
- Removed legislative powers from the Governors of Bombay and Madras.
- Granted the Governor-General of India exclusive legislative powers for all British territories in India.
End of East India Company as a Commercial Entity:
- Terminated the commercial operations of the East India Company, making it a purely administrative entity.
- Declared that the Company's territories in India were held 'in trust for His Majesty, His heirs and successors'.
Civil Service Reforms:
- Proposed a system of open competition for the selection of civil servants. (Negated)
- Stated that Indians should not be debarred from holding any office under the Company.
Significance:
- Marked a significant step towards centralized administration in British India.
- Paved the way for the eventual establishment of a unified administrative system.
- Set the stage for later reforms in the Indian Civil Service.
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Charter Act of 1853:
Purpose:
- To continue the administrative and legislative restructuring of British India.
Key Features:
Separation of Legislative and Executive Functions:
- Separated the legislative and executive functions of the Governor-General's council.
- Added six new members called legislative councilors to the council, creating the Indian (Central) Legislative Council.
- The legislative wing functioned as a mini-Parliament, adopting procedures similar to the British Parliament.
Open Competition for Civil Services:
- Introduced an open competition system for the selection and recruitment of civil servants.
- Led to the appointment of the Macaulay Committee (Committee on the Indian Civil Service) in 1854.
Local Representation in the Legislative Council:
- Introduced local representation in the Indian (Central) Legislative Council for the first time.
- Of the six new legislative members of the Governor-General's council, four were appointed by the local (provincial) governments of Madras, Bombay, Bengal, and Agra.
Significance:
- Marked a significant step towards establishing a more structured legislative process in British India.
- Enhanced local participation in governance.
- Opened civil service opportunities to Indians, setting the stage for future administrative reforms.
Reference: Indian Polity by M Laxmikanth
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