ALIGARH MUSLIM UNIVERSITY

FACULTY OF LAW
2021-2022
PROJECT WORK

HISTORY III
(LEGAL AND CONSTITUTIONAL HISTORY OF
INDIA)

TOPIC - EARLY DEVELOPMENTS OF THE

EAST INDIA COMPANY (REGULATING ACT
AND PITT'S INDIA ACT)

SUBMITTED BY:
BENAZIR AZAD
20BALLB053
GK1888
SECTION A

SUBMITTED TO:
PROF AHMAD SHEIKH EHTESHAM UDDIN KHAN
 Contents

1. Introduction
2. The East India Company
3. The Regulating Act of 1773
4. Pitts' India Act, 1784
5. References
Introduction
The industrial Revolution that started in England eventually dispersed outside Europe, the
Britishers broadened their scope of raw material extraction from countries like India, which
was full of supplies, wealth and opportunities and where they can sell their valuable goods.
But the already declining Mughal Rule paved a way for establishing their trade and
administration in India. The motive was mainly towards gaining a ground for business and
fulfilling their economic needs. But with time, the company grew and led them to set and
start their rule in India and make it a Colony. They formulated policies and tried to shape the
culture and administration in the name of civilising people and exploited the economic
heritage.

The East India Company

The East India Company or the English East India Company was one of history's most
powerful companies and the dominant one, which tried to raise a political power in the Indian
Subcontinent.
Its origin can be traced back to the 1600s, when a group of London merchants headed by Sir
Thomas Smythe granted the Queen's permission to start trade with the Eastern Countries and
thus was named as the East India Company.
The vast empire and wealth of the Mughals which the European can't even think of and the
boundless market rich in agriculture product spices, clothes and precious metals, fascinated
the Europeans greatly.

As the Dutches were also trading in the country, the Europeans started to build small bases
and factories in the eastern and western coasts with permission of Emperor Jahangir. The
Indian artisans and producers primarily worked as the middleman for Britishers the company
grew and became an important bellwether of the British economy and the company emerged
as one of London's most powerful institutions.

European competitors began increasing and tried their luck in India which helped them gain
immensable profits; also the Austrian Succession War increased the strategic importance of
the East India companies Indian footholds, expansions now reached all across Asia and
Africa they began to grapple in the subcontinent till politics and dedining central Mughal
administration emerged as a suitable opportunity to do so.

The Britishers started to maintain a large standing army which mainly existed Sepoys of
Indian origin, who were trained in European military techniques. This military expansion
advantaged the East India Company made a powerful hold on local conflicts and disparities
as they supported the local merchants financially.

The victories at the battle of Plassey(1757) and Buxar(1764) granted them the Diwani of
Bengal that the control over the administration of Bengal reign and right to collect tax
revenue. When the administration started Bengal fell into the hands of British, the
exploitation of Indian soil started. Local Rulers in the south got influenced by the British and
the power simultaneously came into the hands of their hands. The company expanded and the
land of Mysore was captured from the hands of Tipu Sultan.

In 1818 the East India Company became one of most paramount and Central powers in the
Indian Subcontinent.
The rising political power and control became a matter of discussion in Britain, and the
company's policies were viewed with suspicion. As French revolution broke and anti slavery
movement started the concern for the company's activities grew and the question about India
took the stage. In the second half of the eighteenth century, the governor general Warren
Hastings was compelled for mismanagement and corruption.

Regulations for the company's policies and behaviour began in the 1770s the Regulating Act
of 1773 and Pitt's India act 1784 bought it under closer parliamentary supervision. Thereafter
the company gradually lost both commercial and political control. Lord Cornwallis in the late
1780s and early 1790s radically reconstructed the East India Company's administration in
order to eradicate private corruption.

Reforms like Remodeling or Judiciary and 1793's Permanent Settlement took place which
according to the Britons will improve Indian society. The main aims for reforming and
civilizing were basically to gain and secure the company's control, facilitating them to seize
the wealth.

The British created an economic depression in India by running each and every sphere of the
country's assets and regions be it social, political, economic, etc.
The Indian mutiny or the revolt of 1857 or the first war of Indian independence created a fear
in the East India Company. Various forms of direct and indirect resistance started. Though
India faced brutality and loss, this did not deprive the Indians from revolting and protesting
the British rule in India.

The Regulating act of 1773

The anarchy and chaos created after the battle of Plassey led to the great confusion because of
corruption of the British officials who fulfilled their desire through acquiring wealth and
returned England to live a luxurious life which offended the British aristocracy of England.
British public suspected that there was something wrong going inside the company. Thus, the
regulating act was enacted by the parliament of Britain to remove evils from the exploitative
system created by the company's officials in India. The act modified the constitution of the
company, reorganized the government in Calcutta, established a supreme court at Calcutta,
and gave place to the era of royal charters of parliamentary enactments.

Provisions of the act

The motive of the act was to establish certain regulations for the honest and smooth
management of the company's affairs both in India and Europe.
Two major changes in the constitution included were -
● First the term of the directors increased from one year to four years and election of
one fourth of the directors every year in rotation, so as to secure a continuity and
strengthen the position of directors of the shareholders. Secondly, to prevent the
misuse of power, voting rights of the shareholder were restricted to those who held
stock worth Euro 1000 or more.
● The Act controlled the company and worked to be before a secretary of the state in
dealing with the civil and military affairs of the government of India.
● The act appointed a governor general and a council of four and vested them the
powers of the whole civil and military government of the Kolkata presidency. Warren
Hastings was appointed as the first governor general of Bengal.
The members that were sent to India can be removed by the king on recommendations
of the court of directors.
● The act continued the old practice of casting vote in case of ties, where the governor
general had no powers to override the majority of the council which could
consequently defeat the governor general's policy. The governor general and council
also wasted the ordering management and government of all territorial acquisition and
river news in the kingdom of Bengal Bihar and Orissa.
● Each presidency has a direct relation with the court of directors in England but there
was no authority in India to coordinate their activities in any way.
● The regulating act put the presidencies of Madras and Bombay under the
superintendence and control of Kolkata presidency in matters of war and peace. the
subordinate presidencies were required to transmit regularly to the governor general
the information regarding all transactions relating to the government revenues or
interest of the company.
The regulating act centralised administration.
But loopholes were created and found in the presidencies of Madras, Bombay and Kolkata
and the regulation act proved to be more theoretical than real.

The regulating act changed the legislative procedure in a significant manner in Calcutta by
the charter of 1726. The legislative power was to be subject of three restrictions-
1. The rules framed were not to be repugnant to the laws of England.
2. the governor generals were to be reasonable and were to impose reasonable penalties for
their breach.
3. The rules were not to be effective until they were registered and published in the supreme
court.
The establishment of supreme court led to the formulation of many sections and clauses
which the company applied in the functioning of the company. The regulating act had many
judicial provisions.
Pitt's India Act, 1784
This act was passed in August 1784 and its main purpose was to remove the defects in the
regulating act of 1773, was named after the British Prime minister William Pitt. This act
provided for the appointment of a board of control and provided a joint government of British
India, the board consisted of six privy councillors including a secretary of the state and the
chancellor of the exchequer, and was set up to guide and control the work of the court of
directors and the government of India.

Provisions of the Act

A secret committee was also established consisting of three directors who were appointed to
take place of the court of directors in political and military matters. The then made
constitution was revised.
The act gave power of India to the governor general and the council of three, that if only one
member of the council supported him he could have his way. The voting power was given to
the governor general and the act clearly stated that the presidency of Madras and Bombay
where subordinate to Bengal in all the matters of war diplomatic relations and revenue. the
governor general was made subordinate to the British government along with the council.
Declaration of war and sanctions were forbidden.

The board was presided by the president, who after became the minister for the affairs of the
East India company section 3 of the act is power to the President to be the secretary of the
state of the exchequer or the most senior commissioner. This gave supreme power to
governor general over governor of presidency in uniting India.
The possession of the company came under the supremacy of the British parliament in India.
the company reduced one member of the executive council of the governor general to
strengthen the position of the governor general who were given the powers to override their
council.
As the control over the military expanded, the Indian sepoys formed the bulk of the
company's army and grew along with the British expansion.
The control of parliament over the East India company tightened, in this act the ground
directly took over the government of India in 1858.
This act also proved to be a Landmark because it gave the British government control over
policy without patronage. Same as the previous act this also centralise the authority of British
in India.

As the regulating act this act also had many defects if they divided authority and
Responsibility. the conflict between the court of directors and the board of control took place
and out of this conflict the authority emerged the view of the primary of the man on spot .
Reforms of Cornwallis and pit stretched their authority to the widest possible limit. The the
real issues of the state still could not reach the home government or the British parliament
and gave hidden opportunities to the governor generals and the officials.
The Regulating Act of 1773 and the Pitt's India Act of 1784, were one of the major
constitutional developmens that took in the early British era and gave political powers to the
company which provided them to emerge as the greatest political power in the Indian
subcontinent after the Mughals .

References
1. www.britannica.com.
2. en.m.wikipedia.org.
3. Study Materials provided by Prof. Ehtesham for unit 3.