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. At that time, parts of the
current states of Maharashtra, Gujarat, Goa, Karnataka, Tamil Nadu, Orissa, West Bengal,
Bihar and Uttar Pradesh were included in their territories within the region.
With these two major wars, although the Mughal emperor Shah Alam became their retiree, the
Nawab of Awadh became their ally. Bengal and Bihar came under Clive's dual administration
structure, whereby the corporation 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. That are like the
following:
• Not only did this scheme generate confusion, but it also left citizens dissatisfied with
the injustice of companies 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, Jagirs, 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 also decreased
wages. The East India Company applied to the British government for a loan of One
Million Pounds in August 1772.
This was adequate for the parliament to seize the opportunity, cross-examine the corporation
and its officials' actions and then pass a law to govern its affairs.
REGULATING ACT OF 1773
The Regulating Act of 1773 was promulgated by the British Parliament for its regulations to
maintain the affairs of the Company in India.
The main reason for the establishment are:
• To bring management of the Company under the Control of British Parliament
• To bring reforms in the Company’s Constitution in England.
• For reforming Company’s Constitution in India.
• To provide proper remedies against oppression of company servants in India.

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. 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 to £1000 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 representation 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 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, ,Member 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.
CONCLUSION
The first milestone in India 's constitutional growth was the Governing Act of 1773.