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Legal History Semester 4
Legal History Semester 4
Passed by Lord North’s govt. It recognised the political functions of the East India company. It
asserted the right of the British parliament to dictate the system of governance in India. Many
circumstances are responsible for the passing of this act.
1. Desire of British empire to have a share in the spoils or revenue collected in India 1765-
66 british govt. Granted east india company to retain the power to collect Diwani from
the territories of Lahore, Bengal and orissa. A sum of 4 lakh pounds would be given by
company to british govt. They realised company was collecting much more sum of
money so they wanted a larger share. Officials of East India Company were exploiting
the Indians, who collected money from corruption and private trade and became greedy.
After amassing wealth, they went back to ENgland, they would purchase seats in British
Parliament and would occupy positions of importance in Parliament. The BRitish got.
Wanted to stop increasing power of officials of EIC, because they had started replacing
them. Any kind of measure introduced in Parliamnet was favourable to EIC and not the
govt.
2. EIC suffering from financial difficulties due to the private trade and corruption carried
out by officials, revenue of EIC declined. COmpany cam uder debt of about 6 million
pounds, so british parliament intervened.
3. Dual system of govt. Which was introduced had failed. British govt. Carried out series of
enquiries in India and found misgovernance, EIC was in debt, it had to p ay pensions to
erstwhile Mughal emperor, nawab of Bengal and maintain military and had no money to
do so.
As a result, british govt. Decided to bring in changes of governance and brought this act.
ADVANTAGES
Until 1773, company was functioning in a haphazard manner, act gave a clear footing. For first
time, attempt was made to setup written constitution for company and this provided a framework
for all constitutioinal enactments. Changes in home govt, as a result, chaotic state of affairs of
court of directors was removed. Qualificatin of voters increased and real power cam ein hands of
a few experienced men. Earlier there was little vontrol of parliament over EIC, this act required
the company both financial reports and matters relatring to military and civil administartion,
made company subordinate to parliament. Powers of EIC were curtailed. Crown developed direct
control over affairs of company by appointing governor generals, counsel and chief justice that
tried to check corrption of official of EIC. Upto now, official could collect wealth, act prohibited
them from entering into private trade, and could not lend money at more than 12%. Introduced a
centralized administrative machinery. VAst territories of EIC could be consolidated, governor
general and council could control and direct his presidencies and an attempt was made to setup a
supreme authority for all dominions of country. It introduced sovereignty of british parliament
and gave new governor of Bengal, that could place system of check and balance,
Problems
Governor general was left at mercy of council and struggled with it. Did not have veto or casting
vote, so he was defeated by his council. MOst of councillors did not have much knowledge about
INdian affairs. 3 presidencies were independent with respect to native states - in matters
regrading the native states, goevrnor would take all decisions - after act, bombay and madras
became subordinate and would disregard authority of Governor general in various situations-
Anglo maratha struggle, Hiader Ali - COrnwallis said take side of 2nd Peshwa
Juridiction of SC and governor general - overlapping no clear division, which law was to
administered wasnt clear - definition of british subject was not clear - no clarification of govt.
servant . power of Governor genral and council and SC were not clear
IN such cases, it ws largely the personal law of hindu or muslims which applied. In the SC, it
was specified and was to be in accordance with indian religious customs, especially in amtters of
issuoing summons. Governor-general was given the power to frame regulations for the
provincial court and also for the councils and it wasnt necessary that it was to be registered in the
SC. SC was also given the power to try Indian subjects, who were employed by East India
Company. Governor general and his council had 2 kinds of legislative powers - 1 given by
regulating act and 2 - obtained by amending act of 1781.
SIGNIFICANCE
STrengthens position of governor general
Reduced no. of disputes between governor general and SC.
Defects in procedure of SC were removed.
It laid emphasis on importance of regular collection of revenue.
CHanges which were brought in SC especially in functioning and procedure, they were so
successful that similar changes were then brought about in BOMBAY and MADRAS SC.
COntinued to function for a while . Over the time, parliament felt it was necessary to increase its
control over parliament. They also wanted to have direct control over EIC. A large no. of
merchants, demanded reforms in company’s administration. This was largely because the
AMerican war of Independence had started, British Trade had received Major losses due to it.
Trade in America had suffered and this losses could be compensated on;ly by trading with India.
Merchants so demanded changes in the company’s administration, also COnstitutional crisis
arose in England. House of commons received complaints against warren hastings and so they
recalled him back to England. Proprieotrs of company refused to comply with these orders as
they believed Warren Hastings was doing a very good job. British Parliament felt that it was
necessary to bring the company under Direct control of the Parliament.
As a result, a bill was introduced in the parliament to bring about changes, - Pitts India Act AKA
the Act for better Governance in India.
It was seen that by the Act of 1784 the routine work of the East India Company was in the hands
of the directors because the board of control or the board of 6 commissioners which was
established, it was vested with its foreign and political affairs. So, the board was unable to
conduct day to day affairs of the EIC and still most of the control remained with the directors.
Because of this, the British Parliament was not satisfied with the British Control over East India
Company so in 1793 a charter was passed.
The powers of the Governor General over subordinate presidency were increased. The governor
general was to supercede the governor when he visited the presidency. In his absence he could
appoint a vice president in his place. The VIce president was to be from amongst, the
councillors. Vice president could order to the subordinate government without consulting the
local councils. These orders have the same force and effect as those issued by the GOvernor
Genral, the Governor, the commander-in-chief, the approval of the King was necessary. The
KIng could remove or recall an person holding the office at any time. The civil servants of the
East INdia Company were to be graded according to their seniority, only a reliable official of the
East India Company With service of 3 years in India was considered eligible for a post carrying
the salary of more than 500 Rs. a year. Jobs in which salary exceeded 1500 Rs., Rs. 3000 and
Rs. 4000 per annum, a period od 6, 9 and 12 years of service was necessary respectively. the
Governor General and council were authorised to a point any member of justice of peace under
the seal of the supreme court and in the name of his majesty. These testis of peace were given the
power to a point lower officials. Though that admirality rejection of Supreme court was extended
to the high sea. The sale of liquors could not be made without the grant of license. The act
recognised the political functions of the East India company, it brought about minimum changes
in the system of governance in India. The Company's monopoly over trade continued for next 20
years. The control of Governor General over subordinate presidency was increased, East India
Company could grant license to both the individuals and company's employees to trade in India
which paved way for shipment of Opium to China.
A considerable amount was sanctioned for education, although the money want spent for the
next 20 years. But it open a chapter of the advancement of Indian education. The British
merchants were given the consent to settle in India and territories of India was considered as
property of Britain.
Factors
The demand for charter largely came from public servants and not from general public or
merchants. They realised the defects largely in the jurisdiction of the supreme court. The
jurisdiction of the SC was uncertain. Veto power of SC relating to legislation, specially for the
matters coming within their jurisdiction, also caused problems to the public servants. Also the
activities of the SC, in matters affecting the mofussil areas, was a source of conflict and irritation
between the judges of the SC and the Governor General. Another factor was the deteriorating
economic condition of EIC. The budget was in deficit. Governor general in order to improve the
condition was asked to reduce the expenditure of subordinate presidencies.
It meant bringing about greater central control in administrative and financial matters. Also an
alliance took place between the British commercial interests and the evangelicals - those who
wanted to spread Christianity in India. British merchants wanted to invest in India, without any
curbs on them, whereas evangelicals wanted to spread the Christian religion in India. This
necessitated the passing of the new charter. Also the trend of public opinion in England
influenced the company's policies. The question of freely allowing the British and Europeans to
settle in India and to set up their enterprise in India was gaining importance. It was also having
legal and judicial reaction specially from the English men who came to India. They insisted on
the privilege of retaining English law and English courts in India. So they also started demanding
legal reforms. Back in England, the liberal economists and the utilitarian, dominated the political
scene. The doctrine of laissez faire reaffirms dteh potl
The charter was passed in 1833 and came into force in 1854.
Major provisions of charter
1st set of provisions brought about changes in constitutional structure of the central government
in India. Governor general of Bengal was to be known as Governor General of India. He was
given larger powers, and was empowered to make laws and regulations for all persons and places
in British India. These laws automatically became acts of the governor general even though they
weren't registered in SC. He was also given power to control and direct the civil and military
affairs of the country. Council of GG was to consist of 4 ordinary members - company officials
for atleast 10 years. gg was to be chairman of the council. 4th member was to be an English
jurist. This jurist or law member could only sit and vote in the meeting concerning the making of
laws and no other matters. In executive matters, he had no say. Lord Macaulay was appointed as
1st law member. Commander in chief of India could be an extraordinary member of the council
and his rank was next after the Governor General. Governor general also had right to appoint
Indian law commission which waa to be body to inquire into jurisdiction, rights and power so
courts of justice, police establishments. Main purpose was to provide a common law. This
common law was to be applicable to all classes of inhabitants. Due regard was to be given to the
customs of the people. It was also to look into a uniform judicial procedure. The act also
centralised administration of country. Presidencies of Bengal, Bombay and Madras were placed
under the control of governor genral. The disjointed system of 3 independent presidencies was
abolished. A step towards legislative centralisation was taken. Befor this 5 kinds of law existed
in India- acts passed by the parliament, charters, orders of governor general called regulations,
Orders of SC, and laws of presidencies. Now governor general alone could make laws called as
acts.
2nd set of provisions dealt with changes in presidency governments
The government of Madras and Bombay were deprived of their powers of making laws and were
placed under central government in matters of legislation. Financial matters in Madras and
Bombay were subordinated to central government. For all kinds of recurring expenditure,
sanction of central government was necessary. For administration of North Western provinces, it
was suggested to have a new presidency at Agra.
Different reasons for parliament to pass this. In 1833, EiC was granted a charter to trade in India
for the next 20 years. Since this period had expired, so it was obvious, that EIC would apply to
renew it's Charter. In addition, British Parliament developed an increasing interest in Indian
affairs. They wanted to curtail power of court of directors and increase their hold on India
politically matters. Provisions relating to law commission, it was not implemented fully.
Cameron was a member of the council and president of Indian Law Commission, observing that
during the last 20 years, no native had been appointed to any office in spite of their being
eligible. Indians also couldn't derive any benefits from the act of 1833. In Feb 185, Elon
borough, presented in house of lords, a petition sent by people of presidency of Madras wherein
they demanded better education for the people. Another petition was presented by Mont Eagle
for better governance in the presidency. Haroby, presented a petition on behalf of people of
Bengal, complaining that Indians were included from all forms of administration and also
demanded changes in political system. Following these petitions, a committee was appointed to
inqquire into affairs of comapnys admin. These committee presented their reports and taking into
account the suggestions made by the committee's, the charter of 1853 was enacted.
1st set of provisions - home government
The powers of EIC were renewed but not for 20 years . Act allowed the company to have
possession of territories and revenue, till the pleasure of the crown. It became clear that the
company's rule would end soon. The Court of directors, ceased to have power to elect members
to the councils. Number of directors was fixed at 18. 6 of them were to be nominated by the
crown. Quorum of court of directors was fixed at 10. President and other members of board of
control and other officials of board like commander in chief, who was to get 1000 rs as salary,
luietinant governor 100,000 RS.
Each member of council 50000 per annum. They were to be paid by company and their salaries
were to be fixed and paid by crown. Directors were decline fo patronage to appoint civil
servants. Civiils devices were now open to competition and not nomination as was earlier.
Appointments in the civil services were subject to a period of probation. Written competitive
exams for different jobs were to be started. Rules for the same were to be framed by the board of
control.
3 sub committee's having 6 directors were formed to deal with financial, judicial and political
matters. No change in composition of the secret committee. The next set of provisions delat with
central government in India. The act created a separate legislative council for India. Council was
to consist of 12 members including commander in chief, governor general, 4 members of
governor generals council, 6 other members were to be legislative councillors. These 6 other
members were to be chief justice of Bengal. 1 judge of Calcutta SC and 4 civil servants with 10
years experience who were appointed to the local government of Bengal, Bombay, Madras and
North Western provinces. No Indian was associated with the work of the council. Salary of the 4
representatives of the provincial government was fixed at 5000 Rs. a year. Quorum of the
council was fixed at 7. Legislative council was to run at the lines of the parliament. Members
were given the right to ask questions. They were also given the right to discuss policy matters.
The Governor-general could nominate a Vice president to the council. He had the power to veto
any bill of the legislative council. He could veto any bill of the legislative council. Governor
genral was authorised to appoint kar commission. Work of law commission was to drafts of acts
and prepare reports and also recommend necessary legislative measures of the purpose. The
accent of GG was required for all legislative matters. Provision for appointment of a separate
governor of Bengal. Governor general was not to be a governor of Bengal. Also a deputy
governor was to be appointed from someone who had put in at least 10 years of service in the
EIC. The Act empowered the directors to create one more presidency. Since 1833, 2 new
provinces were added to the British Empire ,- Sindh and Punjab since annexation of Punjab.
Directors could appoint a lieutenant governor for these provinces , and 1859 one was appointed
for Punjab.
Law member of the council of governor general were to be regarded as full fledged members of
the council. He could sit in the council and vote in the meeting of the councils.
India Council was to work under the direction of the secretary of state but in matters of revenue,
especially revenue of property, sale and mortgage of property, the secretary of state had to
submit to the wishes of the majority of the council. The secretary of sate in other matters could
overrule wishes of the council. The quorum of council was fixed at 5. It was to meet atleast once
a week. Every member of the council was to hold the office till the pleasure of the crown. The
crown on address of both houses of parliament could remove any member of the council. The
secretary of state had to communicate to the council about all dispatches or matters related to
INdia but orders for war, peace treaties with native states, could be issue sby secretary of state,
without infoming the council. Salary of secretary of state, other members of council and
expenditure regarding indian affairs were to be borne form revenues collected from India. Sect.
of state had to send to Parliemnt an annual financial report about revenue of India. He also had to
submit reports regarding moral and material progress of India. Any decision taken by council in
the absence of sect. Had to be counter signed by Sect. of state before implementation. C
Civil services appointments were to be made through open competition. The rules for the same
were to be framed by the sect. Of state, council with the help of the commissioners of civil
services.
The significance of the act was the direct rule of crown started in INdia. India was no longer to
be governed by a private company . System of dual government cm to an end. Frequent clashes
and conflicts between board of control and council came to end, home govt. Came to have
greater control over the Indian affairs. The governor-general was practically bound to obey the
orders of the secretary of state. The establishment of the India Council was significant since
majority outfits members were to be from those, who had either served in India or resided in
India for a period of atleast 10 years from date of appointment. Earlier the Cod were totally
ignorant about the Indian affairs but now this problem was sorted. The India Council was a body
that advised the secretary of state and also whose members had knowledge about Indian Affairs.
The Act changed the system of government in India, and it confined itself to the improvement of
administrative machinery which was to be superintended and controlled from England.
UNIT 2
Reforms of 1909
Reasons Indian councils act of 1892 failed to satisfy Indians. The constitution and functions of
imperial and provincial legislative councils disappointed Indians. Councils acted as debating
societies and had no powers to discuss finance, important matters and budgets. Members couldn't
ask questions on financial matters. Number of Indians was limited. Non official members less in
no. which resulted in political agitation. At the dawn of century, India faced calamities, including
outbreak of plague and famines at regular intervals. Policies adopted by British were coercive in
nature and did not solve problems of reduction in number of calamities. Lord Curzon became the
governor general and carried out a large no. of measures in name of efficiency and development.
His autocratic temperament caused dissatisfaction. He passed the Calcutta Corporation Act by
which the number of members was reduced from 75 to 50.
In 1904, another regulation was passed under which the highest civil services was to be given
only to the British and not to Indians. In 1904, Universities Act was passed to officialise
universities i.e. the government could now interfere in the appointment, salary fixation and
dismissal from service of university employees
In 1905, the partition of Bengal took place which cause widespread resentment among the
people. In 1904-5 Russo Japanese War broke out wherein Japan defeated Russia and gave hope
to Indians that it too can drive out the British. By this time, the economic conditions in India had
deteriorated. British increased rates of land revenue and irrigation. There was no progress in
agriculture in India. Indians thought that by sitting in councils, they could bring about favourable
agricultural policies. Back in England, liberals came to power. Morlley became the Secretary of
state. He formulated proposals. By 1908, proposals were ready. In Dec 1908, Morlley explained
the proposal to the House of Lords. In 1909, bill was passed and enacted in 1910.
1st set of provisions - expansion of central legislative council. No. Of smembers in central
legislative council increased to 69. Out of 5hese 32 were to be non official members. 37 were to
be official members. 4 categories of members :
1. ex officio members - Governor general, members of council by virtue of them being
highest executive body
2. Nominated officials - civil servants nominated to the legislative council
3. Nominated non officials- not working in official capacity but eminent people.
4. Elected Members - elected to the lower bodies like municipalities, local body, boards.
Out of the 32 non officials- 5 were nominated non officials. 27 elected members -> 5 muslim
contituencies, 6 hindu landlords, 1 muslim zamindars, 1 each for Bombay Chamber of
Commerce and Bengal Chamber of Commerce, 13 different provincial legislatures.
Election procedure was specified. Kinds of electorate - general (20 members), class electorates
(12 members), special electorates(2 members). Out of the 37 official members - 28 nominated by
governor general, rest were ex officio members including Governor General, 6 members of
Governor General's council, 2 extra ordinary members including Commander in chief and
governor of the provinces
Constituencies given the power to discuss any matter, ask questions, given the right to move
resolutions, discuss financial statements and budgets, however not given the right to vote. Rules
were laid down for discussion of budget, including stamp duties, custom duties, taxes, land
revenue assignments, interest on debt, railway and religious expenditure. Like the earliest Act,
the president. of council could disallow asking of any question without any given reason. All
financial matters before submission had to be referred to the Committee. Chairman of the
committee was a finance member. ½ member of committee were non officials and ½ members
were nominated by the government. Act also provides restricted and limited franchise. Franchise
was'nt uniform and was discriminatory fir land holders constituency, only those had right to vote
who had a specified income.
Example,
1. in Madras, all landholders with a minimum income of Rs. 15000/- a year or if they paid
land revenue of Rs. 10,000/- got the right to vote.
2. Bengal - All holding title of Raja or Nawab got the right to vote
3. Central Province- all those who held honorary office or title got the right to vote.
Qualification for voting for muslims and non muslims varied. Any muslim who paid Income Tax
on income of Rs. 3000/- pa got the right to vote. Muslim graduates of 5 year standing got the
right to vote
Hindus, Paris and Christians even if they had an income of Rs. 3 00 000 did not get the right to
vote. Others even with 10 years of standing did not get the right to vote.
Provision for appointment of Indians on executive council - Initially this provision was opposed
in the British Parliament but when it was supported by the British Ministers, it was accepted.
Lord Sinha became the 1st Indian Law minister in the Governor General's executive council.
Number of members in the executive council of Bombay, Madras, and Bengal was fixed at 4.
Governor General was given the power to setup an Executive Council for the Lieutenant
governor's province. Act also introduced separate electorates for muslims, land holders, and
Chambers of college. Qualification for candidates seeking election in Central and provincial
council was specified.
Punjab and presidency areas- eligibility - member of municipality or district board. Women, men
of unsound mind, officials under the age of 25 years or dismissed from the government services
or bankrupt couldn't contest elections. Government could debar any person from contesting
elections.
SIGNIFICANCE - India came to be associated with work of legislation. Strength and powers of
the legislative councils increased. Principle of election started..
Problems - although reforms aimed at associating Indians with the work of the association but in
reality it was nothing other than constitutional autocracy. Only aristocratic elements found a
place in the council and there was no place for the common man. Although parliamentary system
was introduced
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The Judicial Committee's Act, 1833 reorganised the privy council. A permanent body of judicial
committee was appointed with the work of disposing of all kinds of appeals from the colonies. It
also made a provision for the appointment of 2 assessors. These assessors were only to attend the
meetings of the privy council. They were not given the right to vote. Generally 2 retired Indian
judges were appointed as assessors. These assessors were generally from the Crown's courts,
largely the Supreme Court. No retired judge of the Diwani Adalats was appointed to the privy
council. In 1838, an order was passed by which appeals to the Privy Council could be filed only
if the value of the appeals was more than Rs. 10,000/- and appeal was filed within 6 months of
the date of the judgment. In 1845, it was decided that all pending appeals from 1833, since they
were not brought up for hearing, were considered as disposed of in 1845.
In 1861, Reorganisation of judicial systems took place. High courts were established in India. A
provision was made to file appeals form High Courts to the Privy Council in all matters except
criminal matters in cases where value of the case was more than Rs. 10,000/-. A provision was
also made to file appeals form any judgement of the High Courts if the High Court certified that
the case was fit to be appealed in the Privy Council. In 1935, Government of India Act, 1935 was
passed which made provision for the establishment of federal courts in India. Another provision
was made to file appeals from the Federal Courts to the Privy Council from any judgement in
exercise of its original jurisdiction which involved interpretation of the Act or any dispute to
which the state was a party.
Around the same time, proposal was made to establish a Supreme Court for India apart from the
Federal Court to hear appeals from the High Court, however at this point, it was decided to
enlarge the appellate jurisdiction of the Federal Court instead of creating a Supreme Court. In
1948, Enlargement of Jurisdiction Act was passed, which enlarged the appellate jurisdiction of
the Federal Court in all Civil cases. It abolished the system of direct filing of appeals from the
High Court to the Privy Council. However, this was not applicable to all pending cases in the
Privy Council. In 1949, Abolition of Privy Council Jurisdiction Act, 1949 was passed. By this
Act, jurisdiction of Privy Council to entertain new appeals and to dispose of pending appeals
except those which were set down for hearing during the next sitting of the Privy Council ceased
to exist from 10 October 1949. Around 6 appeals which were pending before the Privy Council
were transferred to the Federal Court. Federal court was given the same powers and jurisdiction
as the earlier Privy Council.
In connection with hearing of appeals, it was seen that in relation to India till 1949, the Privy
Council had pronounced 2500 judgements and laid fundamental principles of law. Law declared
by the Privy Council in pre constitution period is still binding on the High Courts in India except
in cases where the Supreme Court has declared a new law itself.