The Company Rule in India (1773-1858)
- Beginning of Rule:The British East India Company was established as a trading company in 1600 and transformed into a ruling body in 1765.
- Interference in Internal Affairs: After the Battle of Buxar (1764), the East India Company got the Diwani(right to collect revenue) of Bengal, Bihar and Orissaand gradually, it started interfering in Indian affairs.
- Exploitation of Power:The period from 1765-72 saw duality in the system of governmentwhere the Company had the authority but no responsibility and its Indian representatives had all the responsibility but no authority.
- Rampant corruptionamong servants of the Company.
- Excessive revenue collectionand oppression of peasantry.
- The Company’s bankruptcy,while the servants were flourishing.
- Response of British Government: To bring some order into the business, the British government decided to regulate the Company with a gradual increase in laws.
Regulating Act of 1773
- Significance
- This was the first step taken by British Government to control and regulate the affairs of East India Company in India.
- The political and administrative functions of the company were recognized for the first time.
- It laid the foundation for central administration in India
- Features
- Governor of Bengal was designated as the Governor General of Bengal (Fort William)
- Governors of Bombay and Madras became subordinate to the Governor General
- Executive Council of 4 members was formed to assist Governor General
- Supreme Court established – Lord Elijah Impey was the first chief justice of Bengal
- Officers were prohibited from private trade or accepting bribe
- Facts
- First Governor General – Warren Hastings
- Supreme Court had one chief justice and three judges
- The court heard cases with the help of Jury of British subjects
- The Court of Directors (24) had to submit report on its Revenue – civil and military
Jurisdiction Act of 1781
- Features
- Exempted public servant’s actions done during official capacity from scrutiny of Supreme Court
- Jurisdiction over inhabitants of Calcutta and administer personal law of defendant
- Supreme court to consider religions and social customs while enforcing decrees
- Appeal from provincial court to Governor General-in-council is final for cases less than 5000 pounds
- If it is more than 5000 pounds then appeal is sent to King-in-Council
Pitts India Act of 1784
- Significance
- For the first time, company’s territory in India was called as British possessions in India
- British government got complete control over company’s affairs and its administration
- Features
- Demarcated the political and commercial functions of the company
- Commercial affairs to be managed by the Court of Directors
- Political affairs to be managed by a newly formed Board of Control
- Board of Control can supervise the operations of the government and revenue
Executive council’s members were decreased from 4 to 3
Act of 1786
- Features
- To convince Cornwallis to accept the Governor-Generalship (by Pitt)
- Governor General got powers to override his council is extraordinary cases on his own responsibility
Charter Act of 1793
- Features
- Company’s privileges extended to 20 years
- Power to override council by Governor General was extended to all future Governor Generals and Governors
- All the members salary was to be paid from Indian Revenue (practiced up to 1919)
- Permission for East India Company to ship opium from India to China
- Country privileges given to the officials of East India Company to trade outside India
Charter Act of 1813
- Features
- Monopoly ended except for tea trade and trade with China
- Allotted one lakh annually for education and improvement of literature and Science etc.
- Christian missionaries allowed to preach in India
Charter Act of 1833
- Significance
- Came in the wake of Industrial revolution and liberal principles in England
- The Act created for the first time, a government of India having authority over the State territorial area possessed by the British
- Features
- Governor General of Bengal was designated as Governor General of India
- Bombay and Madras presidency lost their legislation powers
- Governor General got complete control over civil and military affairs
- A law member was added as the fourth member to the Governor General’s Council
- Law commission was constituted in 1834
- Laws made from these acts were named as Acts (previously called Regulations)
- Government makes Act, while Company makes Regulation. So, EIC started acting as Government.
- East India Company had to end its monopoly over commercial activities. (became an administrative body mainly*)
- Facts
- First Governor General of India: William Bentick (1828 -1835)
- T.B. Macaulay became the first law member, also the first law commission’s chairman.
- This act tried but failed to introduce open competition for civil services
- Section 87, no discrimination to office under company (between Indians and British Residents)
- Abolition of slavery by Act V of 1843
Charter Act of 1853
- Features
- A separate governor was appointed for Bengal
- Extended the company’s rule to possess Indian territories. (no specific tenure)
- For the first time separated the legislature and executive functions of Governor General’s Council
- Open competition was introduced to recruit for civil services
- Macaulay Committee was introduced to recruit for Civil Services
Charter Act of 1853
- Number of Court of Directors (at London) were reduced from 24 to 18
- Legislation became a separate entity
- Central legislative Council was formed comprising of –
- 6 legislative members
- 4 members from local provincial governments
- 2 members appointed by the British
- 1 chief Justice of Calcutta + 1 puisne judge of Calcutta
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