INTRODUCTION

As merchants, the British came to India and, over time, they became its rulers. The British
East India Company was given a charter in 1600 AD to trade in East India. The company
secured an exclusive right for 15 years to trade with India. This charter had to be renewed
from time to time. The East India Company eventually became a territorial force in India, too.
With the victory in the battle of Plassey, the Company’s career as a territorial force in India
had begun. After the Battle of Plassey, however, the company's affairs went haywire and
required parliamentary oversight. Therefore, a series of acts were passed to control the
company's affairs, starting with Regulation Act 1773, to renew its charters; provide for
government in India; provide for civil and criminal laws, etc. Thus, India 's constitutional
history starts with the Regulating Act of 1773.

FACTORS LEADING TO THE ACT

The Battle of Plassey (1757) and the Battle of Buxar (1764-65) culminated in the East India
Company 's firm establishment of territorial dominance in India.
Bengal and Bihar came under Clive's dual administration structure, whereby the Company
received Diwani rights or Fiscal Administration rights, while the puppet nawabs were under
Nizamat (territorial) jurisdiction. This system, however, had different problems that
eventually led to the Regulating Act 1773. These include:
 This scheme generated confusion, it left citizens dissatisfied with the injustice of
Company and Nawabs. The British Parliament was unable to remain a silent spectator
and so regulation of the trading company was required.
 The Company's servants have become dishonest. Many of them retired to England
and took away heaps of riches and lived like Indian Nawabs, properly known in
England as "English Nawabs". In 1772, a secret parliamentary committee stated that
significant quantities were obtained by the company's servants, including Clive etc.
 Corruption was so widespread that, in the early 1770s, the company's servants took it
to the verge of financial bankruptcy. In addition, the famine of 1770 in Bengal also
decreased wages. The East India Company applied to the British government for a
loan of One Million Pounds in August 1772.
 The Company’s defeat in 1796, by Haider Ali of Mysore
Thus, it was obvious from all facts that the Company was manipulating the natives
mercilessly and its administration was corrupt to the core. To save the fair name of England,
intervention was deemed appropriate. In addition, action was warranted when it was realised
that a commercial company is hardly qualified to perform a political body 's role. And finally,
it was feared that, because of their immense ill-gotten wealth, the officers of a company
resident in England would gain power over England's internal administration.
REGULATING ACT OF 1773
The Regulating Act was passed by the British parliament in 1773 to regulate the affairs of the
East India Company. Its main object was to bring the company under the control of the
British parliament. Salient Feature or provision of the Regulating Act are:
1. The main provision of the Regulating Act was to bring the company's administration under
the control of the British parliament and the crown.
2. To introduce certain reforms in the constitution of the company
3. To reconstitute company Government in India
4. To remove corruption and illegalities by company's servant and
5. To establish Supreme Court at Calcutta.

PROVISIONS OF THIS ACT

1. CHANGE IN COMPANY’S CONSTITUTION
The first provision of this Act was to make changes in the policy of appointment and
retirement of the Director of Company in order to tighten up its control with British
Parliament. It raised the tenure of Director from one to four years, with one fourth of
them retiring every year. Furthermore, the Directors were required to submit copies of
letters and advices received from the Governor-General in council. Changes were made in
qualifications for voting. This act increased the qualifications from 500 pounds to 1000
pounds for a vote in the Court of Proprietors.
2. REORGANISATION OF THE COMPANY’S GOVERNMENT IN BENGAL
The Regulating Act led to changes in the organisation and powers of the Government of
Presidency of Calcutta and Diwani Province of Bengal, Bihar and Orissa. The Act
appointed a Governor General and four Councillor for settling the civil and maritime
cases in Presidency of Calcutta. The Act led to change in the designation of Governor of
Bengal into the Governor General of Bengal. The tenure of Governor General and
Council was for five years. The decision of Council was taken on the basis of majority
vote. The Regulating Act provided that the presidency of Madras and Bombay was under
the Control of the Governor General and Council at Calcutta at the time of war, treaty,
peace etc. On 20 October 1773, Warren Hastings became the first Governor General of
India. The members of the council were Lt. General John Clavering, George Monson,
Richard Barwell and Philip Francis. These members could be removed only by the British
Monarch (King or Queen) on a recommendation from Court of Directors.
3. LEGISLATIVE AUTHORITY
The Charter authorised the Company to make the rules and pass ordinances for
conducting good governance. But these could be proved effective only when the consent
of Supreme Court of Judicature at Fort William, Calcutta was received. The legislations
to be made were required to be just and reasonable not opposite in character to the laws of
England. Registration of rules and ordinances could take place only after the passing of
20 days from their date of open publication. Within 60 days of its publication, appeals
could be filed to the Supreme Court challenging its legality or to the King-in-Council.
The Governor General and his Council’s regulations, ordinances could be disapproved by
The King within 2 years from the date they were passed.
The two main features of this legislative system were:
i. It abolished the unnecessary delay which was caused due to rule of taking consent
from Company’s Director in England.
ii. Secondly it put an effective control on the hasty legislation of Governor General and
Council.

4. PROHIBHITION OF PRIVATE TRADING AND ACCEPTING PRESENTS,

GIFTS ETC.
The Act provided that Governor General, Members of Council and Judge of Supreme
Court could not engage in any private trading nor could they accept presents, gifts etc.
The offences and crimes committed by the Governor General, Members of Council and
the Judge of Supreme Court of Judicature could be tried and punished by the Court of
King and Council.
5. ESTABLISHMENT OF SUPREME COURT OF JUDICATURE AT
CALCUTTA
The Regulating Act authorised the Crown to issue a Charter to establish a Supreme Court
of Judicature at Fort William, Calcutta. The Governor General, members of Council and
Judge were authorised to act as a Justice of Peace and held Quarter Session for
administration of criminal justice. Sir Elijah Impey was appointed as the first judge of the
Supreme Court of Judicature at Fort William. It had power to try civil, criminal,
admiralty cases and it had to be a Court of Record. It was given supremacy over all
British subjects including the provinces of Bengal, Bihar and Orissa. The Supreme Court
was also made to consider and respect the religious and social customs of the Indians.
Appeals could be taken from the provincial courts to the Governor-General-in-Council
and from there to King-in-Council.
6. INCREASED CONTROL OVER COMPANY
East India Company was kept under the Control of the King of England. A system had
begun where high officials of the Company, Judges, Member of the Court of Directors
were all nominated. The Court of Directors was also required to report on company’s
revenue, civil, and military affairs in India. British subjects could not charge interest at a
rate higher than 12 per cent. The Act also settled the salaries of the Governor General,
Governors, chief justice and other judges.
 DEFECTS:
The aim of the regulatory act was fine, but the Act was inconsistent with some major
flaws.
 Firstly, the Governor- General had no veto power, so he was left powerless before
his peers. Thus Warren Hastings, the first Governor General had a difficult time,
as he was outvoted and overruled by the members of his council.
 Secondly, the clauses related to the Supreme Court were ambiguous and flawed.
There was no reference in law of anything affecting the jurisdiction of the
Supreme Court. The lines between the Governor's and the Supreme Court 's
powers were also not demarcated. The acts of the company's servants were
brought before the Supreme Court, but there existed a tussle between the
Governor General and the court.
 Thirdly, under the pretext of an emergency, the presidencies of Bombay and
Madras proceeded to act at their discretion.

CONCLUSION
The first milestone in India 's constitutional growth was the Governing Act of 1773. The Act
of 1773 acknowledged the company's political roles, as it confirmed the parliament's right to
determine the mode of government for the first time. It was the first effort by the government
of Britain to centralise India's administrative machinery. The act created a written
constitution in place of the company's arbitrary law for British possession in India. To
prevent the Governor-General from being autocratic, a system was implemented. The
dominance of the Presidency of Bengal over others was undeniably established by this act.
The Regulating Act of 1773 made the presidencies of Bombay and Madras subordinate to the
Governor General and his Council in matters of foreign policy. Now, no other presidency
may issue orders to launch the Indian Princes' hostilities, declare a war, or negotiate a treaty.
A supreme court was set up at Fort William, Calcutta, and the modern Constitutional History
of India began.