HISTORICAL

BACKGROUND OF INDIAN
CONSTITUTION
 OVERVIEW:

 Company Rule :

1. Regulating Act of 1773

2. Settlement Act of 1781
3. Pitts India Act of 1784
4. Charter Act of 1793
5. Charter Act of 1813
6. Charter Act of 1833
7. Charter Act of 1853
 Background :
BRITISHERS Came ---(1609) As EIC to India under charter of Q.
Elizabeth --(1763)  Battle of Buxar --(1765) Treaty of
Allahabad ( Diwani rights )  EIC was bound to become rich –
But  (mismanagement , corruption etc.)officers became rich
 EIC indebt of 1Mn pound  went to British Govt. for help 
QUID PRO QUO  British govt. ready to help but in return started
to control EIC.
COMPANY RULE

By passing Regulating Acts / Charter Acts

 REGULATING ACT OF 1773
 Act was based on report of a committee headed by
the British PM Lord North
 Governance of East India Company was put under
British Parliamentary Control
 Governor of Bengal  Nominated as Governor
General for all 3 presidencies of Calcutta , Bombay &
Madras.
1 such Governor General
st

Warren Hastings
 REGULATING ACT OF 1773
 A supreme court was established in Calcutta in 1774.
 Sir Elizah Impey was the first Chief Justice.
 Other 3 Judges were :
 Chambers
 Limenster
 Hyde
 Governor General was empowered to make rules ,
regulations & ordinances with the consent of Supreme
Court.
 SETTLEMENT ACT OF 1781
 PURPOSE
Enacted to rectify defects of Regulating act of 1773.
 DEFECT
Both SC & GG’s Council was given control over company
officials  Conflict of interest.
 SOLUTION
Limited control of SC over company officers & control over
them took a tilt towards GG’s Council  In other words ,
separation of executive from Judiciary.
 PITT’s INDIA ACT OF 1784
 BACKGROUND • Appointed by British Govt.
• Supervise political , military
 Regulating Act 1773 was not successful & administrative reforms
 EIC was not cooperating.
 FEATURES
 Bifurcated powers of EIC 
Court of Board of
Directors Control
• Governing body of Company
• Supervise only commercial
 1st time the term “ British Possessions
affairs in India” @ company territories in
India
 CHARTER ACT OF 1793
 It gave  Governor-General more powers and control
over the governments of the subordinate Presidencies
of Bombay and Madras.
 Extended trade monopoly of EIC  20 years
 Members of the Board of Control and their staff  paid
out of the Indian revenues.
 Courts were given power to interpret rules &
regulations.
 CHARTER ACT OF 1813
 BACKGROUND 

 Continental System of Napoleon  Closed European ports

for British trade  English Businessman demanded share in
Indian trade  Demanded end to monopoly of EIC.
 Territories of EIC greatly expanded  Difficult to function
both as commercial & political entity.
 Pressure to bring social reforms in India.
 CHARTER ACT OF 1813
 FEATURES
 Abolished the trade monopoly of East India Company 
But , Continued it in “ Tea” & “Trade with China”.
 Christian Missionaries were allowed to spread their religion
in India.
 Local autonomous body were allowed to levy taxes.
 Annual fund of Rs.1 lakh  Spread of western education to
Indians
 CHARTER ACT OF 1833
 FEATURES
 Final step of centralization  All legislative powers of Governor
of Madras & Bombay shifted to G. General of Bengal.
 G. General of Bengal  More powerful  Turned into G.
General of India ( 1st such William Bentick )
 Ended activities of EIC as commercial body  Made it purely
administrative body.
 Slavery system in India was declared illegal through this
charter act.
 CHARTER ACT OF 1833
1835  Lord Macaulay  Chairman
 FEATURES of 1st Law Commission

 Provided for establishment of Law Commission  for

consolidation & codification of Indian Laws.
 Governor Generals Council got full powers regarding revenue
& a single budget for the country was prepared by the
Governor General.
 1st Time  Governor General’s Government was known as “
Government of India” & his council as the “Indian Council”
 CHARTER ACT OF 1833

 FEATURES
 Regulations  were now called Acts
 1st time  “ In trust for his Majesty , Heirs & Successors” used
for company territories in India .
 Attempted to introduce open competition for covenanted
civil services  Idea was dropped @ Opposition from Court of
Directors.
 CHARTER ACT OF 1853
 FEATURES
 Last Charter Act
 A separate Governor for Bengal was to be appointed.
 Separated Legislative & Executive functions of Governor
Generals council 
 GG Executive Council  4 Members
 GG Legislative Council  6 Members

4  Local Govt. of Madras , Bombay , Bengal & Agra

2  Nominated by Governor General of India
 CHARTER ACT OF 1853

 FEATURES

 Gave Indefinite extension to EIC  Company rule could be

terminated at any point of time.
 Introduced open competition system of selection &
recruitment for covenanted civil service.
 This Act followed report of the then Governor General
Dalhousie for improving the administration of company.
 COMPANY RULE (1773-1858) 
CROWN RULE (1858-1947)

BACKGROUND

 MAY , 1857  Revolt of 1857 erupted.

 Structural administrative problems of EIC got highlighted.
 Military inefficiency of EIC came to the notice of British
Parliament.
 COMPANY RULE (1773-1858) 
CROWN RULE (1858-1947)
BACKGROUND

 British Govt. now wanted direct control over India’s

administration.
 August 2 , 1858  GOI Act , 1858 was passed
 Thereby , EIC was abolished & all its powers transferred to British
crown.
 Thereby, Company Rule ended & Crown Rule started

To be continued……