Constitutional Development -

THE COMPANY RULE (1773–

1858)
Evolution of British Rule

In 1600 as trading
From 1858 directly under
Company –East India
British Crown
Company

1765 15 Aug. 1947

1600 1858

From 1765 as territorial Independence from British

power with Diwani rights Rule
(i.e., rights over revenue
and civil justice) of Bengal,
Bihar and Orissa.
COMPANY RULE (1773–1858) –foundations of
central administration in India

Regulating Act of 1773 – First step taken by the Pitt’s India Act of 1784 -British Government
British government to regulate and control the was given the supreme control over Company’s
company's affairs in India. affairs and its administration in India.

1781

1773 1784

Amending Act of 1781 – primarily to rectify

some defects of earlier act particularly dealing
with jurisdiction of SC.

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Regulating Act of 1773
Centralised Administration

• ‘Governor General of Bengal’ with an executive Council of four members to assist him.
• Decisions were taken by majority and governor general had casting vote in case of tie.
• Governors of Bombay and Madras presidencies subordinate to the governor-general of
Bengal
• Establishment of a Supreme Court at Calcutta

Control Over the Company

• Court of Directors (governing body of the Company) to report on its revenue, civil, and
military affairs in India to British Government.
• Prohibition of Private trade, presents and bribes by company servants

Issues with the act

• governor-general’s lack of a veto led to quarrels with his councillors

• supreme court’s lack of defined powers led to legal disputes and anomalies

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Amending Act of 1781

• Exempted – Governor General, his council, and

servants of the company
• Excluded revenue matters
Changes to • Jurisdiction over all inhabitants of Calcutta

Jurisdiction • Court to administer the personal law of the

defendants

of SC • Governor-General-in Council to frame regulations

for the Provincial Courts and Councils.
• appeals from the Provincial Courts could be
taken to the Governor-General-in-Council

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Pitt’s India Act of 1784
Dual system of control by the British government and the East
India Company

Court of Directors to manage the Board of Control to manage the

commercial & day to day affairs political affairs.

Board of Control to supervise and direct all operations of the

civil and military government or revenues of the British
possessions in India.

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Charter Acts – Increasing Centralization & Control
Over Company
Charter Act of 1793

• Governor General & Governors of Presidencies can override council

• Governor General got more power and control over the subordinate Presidencies
• extended the trade monopoly of the Company in India for 20 years
• clearly stated that the company's political functions were on behalf of the British government.

Charter Act of 1813

• abolished the trade monopoly of the company in India except trade in tea and trade with China
• Asserted sovereignty of the British Crown over the Company’s territories in India
• Allowed Christian missionaries & provided for the spread of western education
• authorised the Local Governments in India to impose taxes on persons

Charter Act of 1833

• Governor-General of Bengal as the Governor General of India

• Created, for the first time, Government of India having authority over the entire territorial area
possessed by the British in India.
• Governor-General of India was given exclusive legislative powers for the entire British India
• ended the activities of the East India Company as a commercial body
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Charter Act of 1853
• Mini Parliament - a separate Governor-General’s
legislative council with 6 members called Indian
(Central) Legislative Council.
• open competition system of selection and recruitment
of civil servants
• Local representation in legislative council -4 members
from provincial govt of Madras, Bombay, Bengal and
Agra.

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