Modern

Indian
History
Abhishek Srivastava

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Various Acts of
Britain
(till 1857)

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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 I.

The acquisition of the Diwani of Bengal and the introduction of the Double
Government system by Clive in 1765 became important building block for the
British empire.

In England, the aspect of this dual governance which attracted chief attention
was the immense wealth which the company was expected to derive from the
revenues of Bengal, estimated at £4, 000,000 per annum.

Some, Including Pitt, held even that the crown should now take over the
governmental authority which the company has now assumed, but this
view was held by few and the first intervention of parliament in the company
affairs came in 1767 in the form of a demand for a share of the plunder to the
extent of £400,000 per annum.

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However, under the dual system, The Nawab was limited to the position of a figurehead and the
administration was in the hands of the Deputy Nawab, whose was the nominee of the company and an
English resident posted at the Durbar and the used to decide every matter of significance in the
arrangement (Dual Govt.) a fatal divorce of power from responsibility was inherent which lead to
most of the scandals and abuses speedily to their appearances.

● the abuses of private trade reached its peak because the Indian administrators in this arrangement
were open to illegitimate pressure, and unable to restrict the misconduct of the company's servants.
● the ongoing demands of the company for increasing the revenue eventually resulted in gross
oppression of the peasantry.

1769- When the company was in debt of about £ 6 millions, a dividend of 12.5% was declared,
though the Directors had to conceal facts and falsify accounts. And when the News of the famine in
Bengal 1770 and Haider Ali's successful onslaught into the Carnatic war reached England,

● the company's stock showed a spectacular decline and before long rumours got abroad of the
company's true financial position.
● In sheer desperation, the Directors of the company applied to the Bank of England for a loan of
£ 1,000,000 and while doing so they signed the death warrant of the company's independence.
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 As this resulted in the appointment of a select
committee to enquire into the company's affairs
which was presided over by General Burgoyne who
while proposing a resolution for the appointment of
the committee declared:
"The most atrocious abuses that even stained the
name of civil government called for redress… if by
some means sovereignty and law are not separated
from trade, India and great Britain will be suck &
overwhelmed never to rise again".
1772- They declared another dividend of 12.5%
and they asked the Government for a loan of £ 1
million the Discrepancy was so glaring that it
caused the House of Commons to appoint a second
(secret) committee to investigate the reasons for
it. It became a very debatable and interesting
question that why should a company go bankrupt,
when its servants were returning with their pockets
bulging with gold.
Consequently, the committee issued their
reports. As expected these were highly
condemnatory in nature. Subsequently two
Acts of Parliament were passed.
● The first granted the company a loan
of £ 1, 400, 00 at 4% interest on
certain terms and conditions.
● While the second was the Regulation
Act of 1773.
This act is of great constitutional
significance as it was the first move by the
British Government towards the
centralization of administration in India and
to control and regulate the affairs of the
East India Company.
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Why Britain passed acts??
• Corruption in company officials and their high income lead
to widespread jealousy against them

• Display of Parliamentary supremacy over East India

Company

• On the contrary EIC applied for loan which became a

pretext to pass such laws.

• To establish claim over the cake

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 (1773-1858)
THE COMPANY
RULE

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Broad overview • Initial centralization of administration

of the Acts • Establishment of Various administrative

institutions like Legislative council, executive
council, Supreme court etc.

• Later decentralization of power

• Incorporation of natives into Governance

• Introduced Rule of Law and the Procedures

for Governance
REGULATING ACT OF 1773
FEATURES OF THE ACT:

● The Act remodeled the constitution of the company both in England and in India.
○ In England;
■ it was provided that the Court of Directors, hitherto elected every year, was
henceforth to be elected for four years.
■ The number of Directors was fixed at 24, out of which 1/4th retiring every year.
■ Also, they were required to lay before the treasury all correspondence from India
dealing with the revenues and
■ before the Secretary of State everything dealing with civil and military admonition.
Thus, for the first time the British Cabinet was given the right of controlling the India
affairs.

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● The Act designated the Governor of Bengal as the 'Governor General' of Bengal and created an
executive council of four members to assist him.
○ The first such Governor General was Lord Warren Hastings and
○ the councilors were Philip Francis, Claverin, Monson and Barwell.
○ They were to hold office for a period of five years and could be removed earlier only by the
king on the recommendation of the court of Directors
○ further, the Governor General in council were vested with the civil and military government
of the Presidency of Fort William in Bengal.
● The Act for the establishment of a Supreme Court at Calcutta in 1774 with
○ Sir Elijah Impey as Chief Justice and
○ Chambers, Lemaister and Hyde as the puisne judges.
● It made the Governors of Bombay and Madras presidencies subordinate to the Governor of
Bengal.
● The Act also prohibited the servants of the company from engaging in any private trade or
accepting gifts or bribe from the natives. Thus, laying down the foundational principle of honest
administration.

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Regulating Act of 1773 summary
• Initiation of centralization
• Ist step of British Parliament to control and
regulate the affairs of EIC
• Recognised political + admin function of EIC
• Laid foundation of central administration in
India
Amending Act of 1781
• Remedial and supplementary
• This act exempted the actions of the public
servants of the company done by them in
their official capacity from the jurisdiction
of Supreme Court.
Assessment of the Act of 1773:
The Regulating Act of 1773, tried to sail in an
uncharted sea. It left the details of
administration in India to the devices of the
company.
However, it tried to organize an honest and
efficient supreme authority in Bengal,
Madras & Bombay and to provide against the
abuse of their powers by the servants of the
company.
It was a failure and only added to Hastings
difficulties instead of strengthening him.
The Act was in operation for 11 years till it
was superseded by the Pitt’s India Act of
1984.
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Pitt's India Act of 1784
Features of the Act
● The Act constituted a department of state in England Known as the
"Board of Control". Whose special function was to control the political
affairs of the Court of Directors.
○ The Act empowered the Board of Control to have access to all
the company's papers and its approval was mandatory with
regards to all the dispatches that were not purely commercial, also,
in case of emergency the Board could send its own draft to the
secret committee.
○ Thus, the Act placed the civil and military government of the
company in the subordination in England.
● However, the Act allowed the Court of Directors to manage the
commercial affairs. Thus introducing the Dual System of governance
by the company and by a parliamentary Board which lasted till
1858.

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● The Act reduced the number of members
of the Executive council to three, of whom
the commander in chief was to be one.
● It also modified the councils of Madras and
Bombay on the pattern of that of Bengal.
➔ The act was significant mainly for two
reasons.
◆ the company's territories in India were
for the first time called the British
possessions in India, and
◆ the British Government was given
the supreme control over the
company's affairs and its
administration in India.
Summary of Pitt’s India Act
• Commercial functions of EIC were
separated from Political functions
• Court of Directors- Commercial
functions
• Board of control- will supervise and
direct all operations of civil,revenue
and military matters of British
possessions in India.
• BOC members
– Chancellor of Exchequer
– Secretary of state
– 4 members of privy council
-------Wars and Treaties were
prohibited.
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The Act of 1786
• It was meant to bid Cornwallis to accept
the Governor Generalship of India.
• He wanted to have the power of both
the Governor general and the
Commander in chief.
• This Act conceded this demand and also
gave the power to override the council
in extraordinary cases on his own
responsibility

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The Charter Act of • Company’s commercial privileges extended
for another 20 years.
1793
• Power of Governor General to override his
council was extended to all future Governor
Generals.

• Indian revenue was to be used to pay Home

govt members.

– This practice continued upto 1919.

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The Charter • Monopoly of trade with India was abolished.
Act of 1813 Company could only retain its monopoly over tea
trade and Chinese trading

• Allotted 20 more years to EIC to retain India and its

revenue.

• One lakh rupees were to be spent for education of

Indians

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Before 1833 • Industrial revolution led to the Machine Age.
– Cheap products
– Class consciousness
– Class of intelligentsia
• 1830 Whigs came to power
– Liberal principles
– Rights of Man
– Reform Act in 1832
– Laissez faire widely accepted
• Macaulay
• James Mill (disciple of Bentham)

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The Charter Act of 1833
● This Act is considered the final Step towards the centralization in British India. The company was
asked to close its all commercial activities.
● Governor General of Bengal became Governor General of India
○ The Governor General in Council was given the power to control, superintend and direct the
civil and military affairs of the company.
○ Lord William Bentinck became the first Governor General of India.
○ Bombay, Madras, Bengal and other territories were placed under the complete control of the
Governor-General-in- Council.
○ All revenues were to be raised under the authority of the Governor-General-in Council who
was to have complete control over the expenditure also.
● Also brought about legislative centralisation.
○ Governments of Madras and Bombay were drastically deprived of their powers of legislation
○ left only with the right of proposing to the Governor-General-in-council projects of the laws
which they thought expedient.
● Another lease of 20 years
● Company lost monopoly over Tea and China trade. It was asked to close its commercial business.
● All restrictions on European immigration in India and acquisition of property was lifted.
 ● Act enlarged the executive council of the Governor General by the addition of Law Member for
legislative purposes.
○ He was entitled to sit and vote at the meetings of the council only for the purpose of law
making.
○ Also a law commission was constituted with the purpose of consolidating, codifying and
improving India laws.
○ Lord Macaulay was the first Law Member of the council.

[Section 87: No Indian or natural born subject of the Crown resident in India to Dubai reason only of his religion place of
birth different colour or any of them be disqualified for any place of office or employment under the company”]

[“Not to ascertain qualification but to remove disqualification”,It was meant to repeal the provision of the act of 1793 which
excluded any but covenanted servants]

● The Act attempted to introduce a system of open competition for selection of civil servants and
stated that the Indians should not be debarred from holding any place, office and employment under
the company. However, this provision was neglected after strong opposition from the court of
Directors.
● It also enjoined the Government of India to take measures of amelioration of the condition of slaves
and abolition of slavery in India. (Act V 1843 Slavery was abolished) https://unacademy.com/user/abhishek6077
Assessment
Summary
● The act of 1833 undoubtedly brought about
significant and far reaching changes. • Climax of centralization
● The company having lost its commercial
• Company lost its monopoly over tea
privileges could now concentrate on
trade and Chinese trading also
administration.
● Also, the provision for the codification of law • The lease of 20 years to EIC to retain
was of great consequence as before 1833, the
India and its revenue was extended
laws were so imperfect that in most of the
cases it was almost impossible to ascertain • European immigration allowed
what exactly the law was. There were several
types of laws enforceable in India and at times • European allowed to buy property
it used to become a difficult question to decide
which law was applicable in a particular case. • Open civil services exam was
● Also, the provision concerning the abolition of proposed but rejected by Court of
slavery irrespective of religion, place of birth, Directors
descent and colour is another laudable feature
of the Act. https://unacademy.com/user/abhishek6077
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 The Charter Act of 1853

● Possessing a Significant constitutional landmark, this act was the last of the series of Charter Acts.
● As the time approached for the renewal of the company's Charter, there was a growing demand that
the double Government of the company should be put to end because:
○ Court of Directors had outlived its usefulness and the existence of the Court of Directors along
with the Board of Control only resulting in unnecessary delay in the dispatch of business
and under expenditure.
○ It was also felt that the existing legislative machinery under the charter Act of 1833 was
inadequate.
● Voice was also raised against the Governor- General of India continuing also as the Governor of
Bengal, fearing that as long as he combined these functions he could not be free from a bias in
favour of Bengal.
● Also, great territorial and political changes had taken place since the charter Act 1833. (Punjab, Sind
and Pegu)
● Then there was a growing demand for the decentralization of powers and for providing the people of
India a share in the management of their own affairs for which there was some support in England
also.
● Thus, under these circumstances that the British Parliament was called upon to renew the charrter
Features of the Act

● The Act renewed the powers of the company and allowed it to retain the possession of the India
territories and that is too not for any specified period as the previous Acts had done but only until the
Parliament should otherwise provide.
● Act provided that the salaries of the members of the Board of Control, Secretary and other
officers would be fixed by the British Government but would be paid by the company.
● The number of the members of the Court of Directors was reduced from 24 to 18 out of which 6
were to be nominated by the crown.
○ The Court of Directors was dispossessed of its power of patronage as the services were now
made open to competitive examinations, in which no discrimination of any kind was to be
made.
○ And to enforce this scheme a committee with Lord Macaulay as its president was appointed
in 1854.
○ The Court of Directors was now empowered to constitute a new presidency or to alter the
boundaries of the existing ones to incorporate the newly acquired territories.

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● The Act Also empowered the
crown to appoint a law
commission in England to
examine the reports and the
drafts of the Indian law
commission.
● It introduced for the first time,
local representation in the India
(control) legislative council.
● Out of the 6 new legislative
members of the Governor-
General's council, four
members were appointed by the
local (provincial) governments of
Madras, Bombay, Bengal and
Agra.
SUMMARY
• The lease to company was
extended indefinitely till further
decision of Parliament
• Civil services exams were made
open (Macaulay Committee)
• Law member became the
permanent member of executive
council
• Additional six members were
introduced for legislation.
• Executive council could veto LC
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Assessment of the Charter Act of 1853

● The Act was a Compromise between two conflicting views.

● Those who favoured the retention of the company's
territorial authority were satisfied by the provision that the
company should continue to govern India in trust for the
crown until the Parliament should otherwise direct.
● While those who wanted the substitution of Crown control
for that of the company were now satisfied that the number
of directors were reduced from 24 to 18 of whom 6 were to
be the nominees of the crown & that the quorum was fixed
at 10 so that when the meetings of the court were thinly
attended, the nominees of the Crown were able to have a
majority.
● Eventually, the Directors lost their patronage. One of the
main shortcomings in the act however was the continued
exclusion of the people of the land with the work of
legislation.
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• L1= Chief justice of Calcutta Supreme court
• L2=Judge of Calcutta supreme court
• L3,L4,L5,L6=Representatives of Bengal, Madras, Bombay & NWFP provinces
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The Crown’s Rule
1858-1947

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The Act for the better Government of India 1858

The charter Act of 1853 had clearly laid down that the company
was to retain the territories and the revenues in India in trust for
the Crown not for any specified period as the previous charter
acts had provided but only until parliament should otherwise
direct.

The door was thus left open for the Crown to step in anytime
and take over the administration from the hands of the
company, further, the crisis of 1857 gave a fillip to the demand
that a trading company should not be allowed to continue as a
political power.

And hence, this time the demand could not possibly go

unheeded and when reorganization took place after the crisis if
furnished an opportunity for transferring control from the
company to the Crown. https://unacademy.com/user/abhishek6077
According to Lord Palmerston who introduced the Bill for Better
Government of India in the House of Commons in February 1858,

● the first defect of the company's rule was its utter

irresponsibility.
● Another defect was the cumbrous, complex and irrational
nature of the system of Double Government.

His bill went through the second reading but before it could become
law, the ministry changed and Palmerston was now in the
opposition.

While Lord Derby, with Disraeli as the chancellor of exchequer

succeeded. Disraeli introduced a new India Bill but it was criticized
by Palmerston.

Finally, the Act for the Better government of India as passed was
based upon a series of resolution passed by the parliament and it
received the Royal assent on August 2, 1858. https://unacademy.com/user/abhishek6077
Features of the Act

● Enacted in the wake of the Revolt of 1857, this act is also known as the act for the Good
Government of India.
● It abolished the East India Company and transferred the powers of government, territories and
revenues to the British Crown.
● The Act provided that India henceforth was to be governed by and in the name of her majesty.
● It changed the designation of Governor- General of India to that of Viceroy of India and he was
the direct representative of the crown in India,
○ Lord Canning became the first Viceroy of India.
● It ended the system of Double Government introduced by Pitt's India Act of 1784.
● The Act created a new office, Secretary of State for India, who was vested with complete authority
and control over Indian administration.
○ It also established a 15 member council of India to assist the secretary of state for India.
○ It was an advisory body whose chairman was the secretary of state.
○ 8 were to be appointed by the crown and 7 by the court of Directors.
○ Act also provided that at least half of these members must have served in India for not less
than 10 years and they must not have been away from the country for more than 10 years at
the time of their appointment. https://unacademy.com/user/abhishek6077
 ● The Act declared the secretary of state for India as a corporate body who could sue and be sued in
India and in England.
● Now the appointment to covenanted civil services were to be made by open competition under
the rules laid down by the sec. of state with the help of civil service commissioners.

Assessment

● The Secretaries of State for India who were appointed according to the act of 1858 were far abler
men than the members of the boards of control had been.
● The British parliament was content with leaving the secretary of state alone to act as he pleased.
● They started managing the affairs of India so efficiently that there were no occasions for the
parliament to give any directions or interfere in their work.
● Also, as the most brilliant Englishmen had now entered the India civil service and were carrying on
the administrative work efficiently. It was thus thought ungenerous and unnecessary from the British
point of view, to criticize them.
● Thus, by this way developed the theory of trusting the man on spot and supporting him and
leaving him alone.
● The members of parliament now realized that nothing was to be gained by interfering in the Indian
affairs. Thus, the interest of parliament in Indian affairs slackened since 1858.
Government of India Act (1858) summary
(Act for the Good Government of India)

• India passed from the hands of EIC to explicit control of Britain Parliament.

• BOC and Cod abolished (from power)

• Instead Secretary of State for India (member of British cabinet) along with Council of
India(advisory body) were made responsible for handling India

• Governor General of India became Viceroy of India

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Acts after 1858

• The Indian Councils Act 1861 • The Government of India Act 1919

• The Indian Councils Act 1892 • The Government of India Act 1935

• The Indian Councils Act 1909 • The Indian Independence Act 1947

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Thank you!

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