Growth of the London Company

Company of merchant of London was granted a charter of incorporation on 31

st
December, 1600.
The aims of the company essentially commercial. Trade with the east was essential in order to
obtain those spices necessary to render palatable the limited foodstuff aailable under the
primitie agriculture condition of the day and other products pri!e for their utility or beauty in the
west.
The charter authori!ed the London company to traffic and trade freely "into and from the east
indies, in the countries, and part of #sia and #frica and into and from all island, ports, haens,
cities, cree$s, town and places of #sia and #frica and #merica, or any of them beyond the cape of
bona %speran!a to the straights of &agellan. The charter was gien for 1' years and could be
ended by giing a notice of two years.
Constitution of the company
(nly those persons were the member of London Company who purchased shears in the first
oyage or in the subse)uent oyages. The amount contributed by member aried from time to
time. The sons of the member could also claim to be the member of the company on attaining the
age of *1. # person could also become a member through serice or apprenticeship or on the
payment of a small amount at the time of admission. +enerally, a person could become a member
by paying , 100. -n certain cases, een those persons were made the member of the London
Company who could e.pect to help it in any way.
The constitution of the company was democratic. -ts member elected eery years a
goernor and '/ committees. These committees came to be $nown as directors later on. The
legislatie powers of the London company were much more limited and circumscribed
than those gien to the companies for new %ngland. 0or e.ample, the +oernor of the
company of &assachusetts 1ay was gien the power "to ma$e laws and ordinances for the
good and welfare of the said company and for the goernment and ordering of the said
lands and plantations and the people inhabiting and to inhabit the same2 . # comparisons of
the two brings one to the conclusions that the &assachusetts company was gien
definite powers to ma$e laws and goern the territory, but that was not so in the case of
the London company.
+rowth of the company. -n 161', the company was authori!ed to issue commissions to its
captains.
-n 16*3, the company came to hae the power to control its serant both on the high seas
and in -ndia.
The London Company had to face a lot of difficulty at the hands of interlopers and
rials. -n this connections reference may be made to the #ssad Company. This company is $nown
as the 0ourteen #ssociation after the name of 3ir 4illiam 0ourteen its founder it inflicted great
losses on the London Company. #s results of a compromise, the assada company was merged into
the London Company.
The London Company also got a set5bac$ on account of ciil 4ar in %ngland. 6oweer, it
gained much at the hands of Cromwell. The Charter of 17
th
(ctober, 16'8 re)uired the company to
hae "one continuous 9oint5stoc$2 with the result that it "was transformed from a feeble relic of
the medieal trade guild into a igorous forerunner of 16'8, any one could become a member of
1
the company by paying an entrance fee of : ' and by subscribing at least : 100 to the stoc$ of the
company. # member could ote in the general meeting only if he had stoc$ worth : '00. Those
who held stoc$ worth 1,000 or term of office of the +oernior and the Deputy +oernor was
reduced to two years.
Charter of 1661.
# new Charter was issued in 1661 by Charles --. -t appointed +oernors and other officers.
The +oernor and his Council were gien general 9udicial authority "to 9udge all
persons belonging to the said +oernor and Company or that shall lie under them, in all cases,
whether ciil or criminal, according to the laws of this $ingdom, and to e.ecute 9udgment
accordingly2.
Charter -- had gotthe island of 1ombay from ;ortugal by the &arriage Treaty of
1661. 1y the Charter of 166<, he transferred the island to the London Company on an annual
payment of : 10.
The charter of 16<3 gae the company full power to declare and ma$e peace and
war with any other power. The Company was also gien powers to raise, arm, train and muster a
sufficiently strong army. The Charter also proided for the establishment of a Court consisting of
one person learned in ciil law and two assistants to be appointed by the Company.
The Charter of 16<6 authori!ed the Company to appoint admirals and other seas
officers. The Company was gien a general power to coin any species of money.
The Charter of 1673 added 8//,000 to the capital of the Company. =o indiidual
member was to be allowed to subscribe more than : 10,000. 0or eery one thousands pounds, the
subscribe was gien one ote, but no one could e.ercise more then ten otes. The salaries of the
+oernor and deputy +oernor were fi.ed. The Charter of 167/ made the principal of rotations of
offices compulsory. =either the +oernor nor the deputy +oernor could remain in office for more
then two years. %ight committees out of twenty >four were to be elected eery year.
=ear about 167<, &r. &ontague the then Chancellor of the %.che)uer wanted to raise
loan for the state. The monopoly in trade was irtually put up for auction among all those who
could gie the +oernment : *,000,000 at <? p.a. The London Company offered , 800,000 which
was in 3ufficient. 1ut a new Company was willing to subscribe the whole amount needed. The
result was that a bill was passed in 167< by the 1ritish ;arliament. The #ct proided for a
subscription of , *,000,000 3terling as a loan to the 3tate which in return was to grant. "+eneral
3ociety2 the e.clusie right of trading to the %ast -ndies. The London Company was to be gien a
notice of three years @e.piring in 1810A to wind up its business.
-n order to strengthen its position, the old Company 1ought shares worth , 31',000 in the
new Company. There was ruinous competition between the two Companies for 3ome time. The
result was that the new Company began to lose heaily. Bltimately, a compromise was arried at
in180*. #ccording to that compromise, "the old Company was to maintain its separate e.istence
for seen years, but the trade of the two Companies was to be carried on 9ointly, in the name of
the %nglish Company, but for the common benefit of both under the direction of twenty5
four managers, twele to be selected by each Company. #t the end of the seen years, the old
Company was to surrender its Charters.2 The new Company was to carry on trade in the
name of "The Bnited Company of &erchants of %ngland trading to the %ast -ndies.2
-n &arch 1807, the London Company surrendered its Charters to Cueen #nne.
2
THE ENGLISH EAST INDIA C!"AN# $1%&'(1))*+
The %nglish %ast -ndia Company met serious opposition #t the hands of the 0rench %ast
-ndia Company and the -ndian ;rinces. #s regarded the 0rench %ast -ndia Company, it had
1een started in 166/ in the time of Louis D-E under the ;atronage of Colbert. The
Company did not ma$e much ;rogress upto 18*0. -n 18*', it ac)uired &ahe on &alabar Coast.
-n 1837, it got Fari$al on the Coromandal Coast. -n 183', Dumas was appointed the +oernor of
;ondicherry. -n 18/1, he was succeeded by Duplei. as the +oernor.

THE ENGLISH EAST INDIA C!"AN# 11
Duplei. was a great dreamer and he dreamt the dream of 0ounding the 0rench %mpire
in -ndia on the ruins of the &unhall %mpire. The disunity preailing in the country 4as
helpful in the accomplishment of his aim. 6e could easily play one -ndian ;rince against the
other. &oreoer, the military system of the 4est was superior of that of the -ndians.
During the 3econd Caryatid 4ar, Duplei. supported&u!affar Gung against =assir Gung for
Deccan throne. =assir Gung was defeated, but when &ustafa Gung was Filled, he put
3alaam Gung on the Deccan throne in 18'1and sent 1usy to safeguard the 0rench interests.
Duplei. also put forward Chandra 3ahib as a candidate to the Caryatid throne in
opposition to #nwar5us5din. #nwar5us5Din was $illed in 18/7 in the battle of #mber and
Chanda3ahib was put on the caryatid throne , howeer, that
3uccess was short5 lied on account of the emergence of Clie on the scene. -t 4as the
capture of #rco in 18'1 by Clie That forced Chandra 3ahib to raise the siege (f
Trichnopoly where &uhammad #li, the son (f #nwar5us5Din, was ta$ing refuge. Chandra
3ahib was he defeated and lost his life. Thus, the %nglish came to hae their hold oer The
Caryatid. Duplei. was called bac$ because 6e could not recoer his lost position. The treaty (f
;ondicherry of 18'' ended the 3econd Caryatid 4ar. The Third Caryatid 4ar coincided 4ith
the 3een Hears , war in %urope and =orth #merica. Count Lilly could not accomplish
anything substantial. 6e was defeated in the 1attle of wand wash in 1861.
-n 186', Clie established 4hat is $now #s the dual +oernment in 1engal. The
%nglish shared with the #nwar of 1engal the administration of the ;roince of 1engal. #s the
3ystem did not wor$ satisfactorily, the same 4as abolished in 188* and the whole of the
administration of 1engal was ta$en oer by the %nglish .1ut it seems desirable to gie a
detailed #ccount of the system of Dual +oernment in 1engal.
1*
Dua, Go-ernment of .en/a, $1'6*0%1+2
The system of Dual +oernment of 1engal whish was set up by Clie is not so easy to e.plain as
it might appear at first sight. -t was not the simple diision of control oer the ad minister action
of 1engal between the %nglish %ast -ndia Company and #nwar of 1engal. The ;osition was
somewhat as followsI
The #nwar or 3ubedit (f 1engal as Eiceroy of the &unhall %mperor, e.ercised two functions
I @1A the Diana, - e., reenue and ciil 9ustice, and @*A =iamey , -. e., military ;ower and
criminal 9ustice . #s 3ir Games 3tephen points Company in #nwar granted ;ractically the
=iamey to the Company in 0ebruary 186'. -n #ugust 186', %mperor 3hah #lma granted
the Diana to the Company . The Company Thus got the Domain from the %mperor and the
=iamey from the subedit. 3o far the position was clear 1ut the difficulty was created by the fact
that the serants (f the %astJ -ndia Company did not underta$e their duties #s Domain or
3
=a!ism in their own person. The nominal 6ead of the administration was a Deputy =ab or #nwar
4hom the #nwar bound himself to appoint with their 3anction. # similar Deputy was appointed
for 1ihar. 1ut the whole administration was carried on for many years through the agency of the
natie serants.6omweer, in 1867 %nglish superisors @afterwards Called CollectorsA were
appointed to control the natie reenues officers. 1ut -nstead of improing matters, they only
made confusion worse confounded and corruption mare corrupt such was the dual system of
goernment set up in 1engal by Clie. -t might be as$ed as to why it was that Clie hesitated to
ta$e oer the administration of the proince when he could hae done that so easily. The nasal was
merely a puppet in the hands of the 1ritish. #s matter of fact, all power was in the hands of the
1ritish. The #nwar was their creature and depended upon them or his %.istence. Clie would
hae rendered a great serice by #bolishing his office and assuming the control of the goernment
directly, rather than agree to play the role of 4ire5puller from behind the scene. # pointed out by
Dowell, the great disadantage of the scheme was that it 3eparated power from responsibility.
The %nglish were +ie control oer the proince but they did not feel any Kesponsibility for its
administration and could not be held Kesponsible for anything done badly. This was made clear
when in 1880L a serer famine bro$e out in 1engal. The 3erants of the company did feel
any duty towards the ;eople who were left to die in thousands. That appalling Distress can be
attributed to the system of dual goernment. ;ie. Koberts Critici!es the system in these wordsI
"The Bnfortunate diorce of power from responsibility soon caused a recrudescence of the old
abuses.26oweer, the system set up in 18'7 had certain immediate #dantages. -t was suited
to the e.igencies of the time. -t secured that control oer the nasal whish was
regarded as the most pressing need of the time. -t also secured protection against the
complaints of the foreign ;owers and demands of the home goernments. Clie still
remembered how the ostensible assumption of power contributed to produce the unyielding
opposition of the %nglish To the schemes of Duplei.. The writs of the emperor or ;arenus of
the #nwar , though alueless without the support (f the %nglish power, could not be fully
discounted at ;aris (r the 6ague without a sermons breach of diplomatic %ti)uette. -t
was though that something less than the #ssumption of the full dominion would be less
li$ely to e.cite Legal difficulties in %ngland or proo$e the interface of ;arliament . "in
short the grant of the dian was designed To secure the f8ll control of 1engal affairs so far
as the Company Ms interest went without incurring the incontinences (f formal
dominion.2@DowellA.
Koberts says that een Clie would not hae denied the charge that the system set up by him
was not perfect. 1ut he maintains that "Clie could not afford to indulge in counsels of perfectionL
he had to deal with actualities. 6e admitted that the #nwar had only the name or shadow of
authorityL yet this name5this shadow it is indispensably necessary that we should enerate. Earlets
tells us that it was impossible to ta$e oer the full got of the proince. -n the first place, the
=umber of serants of the company re)uired for the tas$ administration was ery limited.
3econdly, they were )uite ignorant of the tas$ of administration, for they &erely writers in the
companyMs serice. 0rom 186' to 188*, the actual administration was in the hands of to -ndian
(fficials $nown as nab dians, the company itself being actual dian. &uhammad ra!e $han was
in 1engal and ra9a sitar ray was in 1ihar. -n 1867 were appointed 1ritish superisors who were
gien "a controlling, Though not an immediate, power oer the collectors, the eil of the system
4as that while company itself was in serious financial straits, its serants were Keturning to
%ngland with big fortunes. &oreoer, the directors strongly suspected that The nab dians were
intercepting a large part of The reenue was appointed in 188* definitely with # iew to end the
dual system .The court of Directors had decided to "stand forth as dian. 6e was in fact selected to
ta$e the place of the three superisors. "4e now arm you with our 0ull powers, "wrote the to
ma$e a complete Keformation.2 #lthough he was gien definite -nstructions on most points, it is
4
to a certain %.tant true, as lord thin low says, that he was ordered "to destroy the system for the
got of 1engal, under -nstructions so 9udgment and discretion.2
0ormally, the abolition of the dual goernment did =o more than that the company was henceforth
the reenues through the agency of its own serants. 1ut in reality, it meant becoming responsible
for the whole of ciil administration. 6astings hardly e.aggerated it when he described -t as2
implanting the authority of the company, and the soereignty of +reat 1ritain and the Constitution
(f this country. The first step was the abolition of the offices of nabs dians of 1engal and 1ihar,
and the prosecution of &uhammad ra!e $han and ra9a 3hiite ray for peculation. #fter undergoing a
long Trial and being $ept in custody for rather more them a year, they were both ac)uitted. The
trial was merely a formal affair designed indirectly to remoe them. #lthough warren 6astings
was imposed to it, it sered the purpose. The retrospection and e.amination are death iew, 3aid
6astings.
Thus it was that the dual system which was set by Clie was abolished by warren 6astings.
-t was not intended to last for eer. -t was a stop5gap. -t was difficulties confronting the %nglish in
186'.
The re/u,atin/ act $1'%3+
Circumstance ,eadin/ to it
&any factors wryer responsible for the passing of the regulating act in 1783.clie had established
what is $nown as the double goernment in 1engal .according to liberty, the state claimed its share
of -ndia spoils and asserted its right to control the soereignty of -ndian territories. The wor$ing of
diarchy in 1engal was doing haoc to the people. The serants of the company did all that they
could to add to the miseries and sufferings of the people.
The famine of 1880 added to their priations.
The serants of the company brought huge fortune to %ngland .with the help of their money they
were able to corrupt the politics of %ngland .at the same time the %nglish publicists heard about
the sufferings of the people on -ndia under the control %nglish east -ndia company .the situation
was considered to be so serious that in #pril 188*, the house of commons appointed a select
committee of 31 members to en)uire into the affairs of the east -ndian company.
"ro-isions of the 4e/u,atin/ Act
@1A The regulating act gae the right of ote for election of directors of the company to
shareholders holding stoc$ worth 1000 for 1* months preceding the date of election
5
@*A ;roision was made for a goernor general of 1engal and his council of four members .they
was ested with the whole ciil and military goernment of the said presidency and also the
ordering management and goernment of territorial ac)uitting and reenues in the $ingdoms of
1ihar 1engal and (rissa.
@3A+oernor in council of 1ombay and madras were re)uired to pay due obedienceNs to the order
of goernor.
@/A +oernor5general in council was gien the power to ma$e rules ordinances and regulation for
the good order and ciil goernment of company settlement at fort 4illiam and factories and
places suborning to it.
@'A The regulating act proided for a supreme court with a chief 9ustice and three poise 9udge .sir
%li9ah impels was appointed the chief 9ustice.
@6A The Kegulating #ct prohibited the receiing of present and bribes by the serants of the
company.
@8A =o 1ritish sub9ect was to charge interest at a rate higher than 1* per cent.
Criticism of the Act
@1A The regulating #ct was full of defects. -t did not clearly define the 9urisdiction of the
+oernor +eneral in Council and the Gudge of the 3upreme Court.
@*A The powers of the 3upreme Court were not clearly defined and that led to a conflict of
9urisdiction between the supreme court of Calcutta and the courts of the company.
@3A The 3upreme Court claimed to try the 9udge officers of the company for the wrongs done
by them their official capacity.
@/A The 3upreme Court claimed to hae 9urist ion oer the reenue collectors of the company
for wrongs done by them in their official capacity.
@'A The 3upreme Court refused to recogni!e the audition of the ;roincial or country courts.
@6A -t was not clearly stated by the regulating act to which law was to be administered by the
supreme court was it to be 6indu Law &uslim Law the Christian or the %nglish LawO
@8A There were many gaps in the #ct which clear confusion
@<A The #ct left the +oernor5+eneral at the meeting of the members of his council.
@7A 3ome of the appointments made by ;arliament were ery unfortunate .There could be no
co operation under these circumstances.
@10A The #ct made a defectie change in the constitution of the home +oernment of the
company. The raising of the )ualification of the oters among the proprietor turned the
Court of Director in to more or less a permanent oligarchy.
@11A #ccording to ;.%. Koberts, the Kegulating #ct was a half measure and disastrously
ague on many points. The titular authority of the =awab of 1engal was left by implication
in facts and no assertion was made of the soereignty of the crown or company in -ndia.
@1*A The control of 1engal oer madras and 1ombay did not wor$ satisfactorily.
@13A #ccording to 1hutan Kouse, "The ob9ects of the act were good, but the system that it
established was imperfect.2
6
@1/A #ccording to ;.%. Koberts, the regulation #
"6ad neither gien the state a definite control oer neither the company, nor the goernor5+eneral
a definite control oer neither the serants, nor the directors a definite control oer his council, nor
the Calcutta presidency a definite control oer madras and 1ombay.2
@1'A #ccording to the report on -ndian constitutions reforms of 171<, the regulation act
"created a goernor5general who was powerless before a supreme court itself immune from all
responsibility for place and welfare of the country > a system that was made wor$able by the
genius and fortitude of one great man,2
The court e.ercised large powers independently goernment often so as to obstruct it, and
had a complete control oer legislation. ;olitical power was thus ested in 9udges who had neither
the responsibilities nor the machinery of goernment. 3uch a system could not endure under any
circumstances.
"The plan of controlling the company, s goernment by the $ingNs court entirely failed. The
tribunal came to be regarded by the naties, for whose protection it was established, with the
utmost abhorrence. The policy which shaped the regulation act was, no doubt, well intentioned,
but it was rashly and ignorantly e.ecuted.2
-t is to be noted that many of defects of the regulationing #ct were remoed by the act of
18<1 and not by the pitNs -ndia #ct as is use ally stated.
Importance of the re/u,ation act2
The regulating act was the first of a long series of acts passed by parliament to change and
regulate the goernment in -ndia. -t made a beginning in the system of a written constitution for
1ritish -ndia. The right of parliament to interfere into the affairs of the company and legislate for
its possession was recogni!ed. -t is a landmar$ in the transfer of power from the company to
parliament. The act established a collegiate rule in place of "one man rule2 it recogni!ed the
political functions of the company. #ccording to Loyal, "The system of administration set up by
the act of 1883 embodied the first attempt at giing some definite and recogni!able form to the
ague and arbitrary ruler
#ct of 1883 embodied the first attempt at giing some definite and recogni!able form to the ague
and arbitrary ruler ship that had deoled upon the company. 0rom the time forward, the outline of
#nglo -ndian goernment was gradually filled in.2
The act bore the impress of all these stress and strains. -ts most praiseworthy feature was the
setting up of the 3upreme Court as guarantor of good goernment in 1engal for all. -t introduced
the thin end of the wedge of direct #dministration by the crown by insisting on securing timely
information from the company about its affairs in -ndia. -t recogni!ed the board of directors for
another 60 years in -ndia.
7
Amendin/ Act of 1%)1
@1A The act of 18<1 was passed with a iew to remoing the defects in the regulating #ct. This
act e.empted the actions of the public serants of the company done by them in their official
capacity from the 9urisdiction of the 3upreme Court. Keenue collectors and the 9udicial officers
of the country courts were e.empted from their 9urisdiction of the 3upreme Court for act done by
them in their e.ecutie or 9udicial capacity. The goernor general and the members of his council
were e.empted from the 9urisdiction of the 3upreme Court, both indiidually and collectiely, "for
anything counseled, ordered or done by them in their public capacity.2
@*A The )uestion of 9urisdiction of the 3upreme Court was settled. This court was to hae
9urisdiction oer all the inhabitants of Calcutta. -t was to administer the personal law of the
defendant.
@3A The serant of the company or of its 1ritish (fficer, or of any 1ritish in -ndia were to be
sub9ect to the 9urisdiction of the supreme Court only in actions for wrongs or trespass or ciil cases
by agreement of parties. They were not to be sub9ect to its 9urisdiction regarding matters of
inheritance or succession to land or goods etc.
@/A The company was to $eep registers containing the name occupations etc., of its -ndian
employees.
CHA"TE4 5 11
"ITT6S INDIA ACT A7TE4
D8NDA6S .ILL $1%)3+
T6% #mending act of 18<1 did not remoe all the defects of the regulating act and conse)uently
many bills were introduced in parliament to remedy them. -n #pril 18<3, Dudes introduced his
bill, #ccording to itL the crown was to hae power to recall the principal serants of the company.
The control of 1engal presidency oer 1ombay and madras was to be increased. The +oernor5
+eneral was to hae the power of acting on his own responsibility imposition to the o Pinions of
his own council.
6e was to be empowered to hold the office of commander5in5Chief. Those 3eminars of 1engal,
who were displaced as a result of )uin)uennial settlements, were to be restored. (biously, the bill
gae complete authority and control oer 1ritish -ndia into the hands of a person with the title of
+oernor5+eneral and captain +eneral. #s Dudes was in the opposition, the bill was dropped after
introduction.
7o9 India .i,, $1%)3+
8
-n =oember 18<3, fo. introduced his famous bill on -ndia. The bill proposed to abolish the board
of directors and court of proprietors and set up two other bodies.
3een commissioners or directors were to administer the reenues and territories of -ndia. They
were to appoint or dismiss all persons in the serice of the company.
They were to be named in the act and were to be irremoable e.cept on an address from either
house of parliament. Eacancies were to be filled by the Crown.
Commissioners were to sit in London and parliament was to hae opportunity to inspect the
minutes of their proceeding.
=ine assistant directors were to be =ominated in the act from the proprietors with the largest
holding in the company. They were to be appointed for fie year and acancies were to be
filled by the court of proprietors.
#ccording to fo. , his bill MNwas the only possible means of aerting and preenting the
final and complete destruction of the companyNs interest.NN 0o. maintained that his billNN
was a child not of choice, but of necessity.NN
The mi.ed system of goernment was suited to the mi.ed comple.ion of 1ritish interests
in -ndia . he contended that MNthe -ndian people in spite of eery e.ertion both of the
legislature and court of directors, groan under the desperate man, whom, in my
conscience and from my heat, - detest and e.ecrate.NN
1ur$e gae a brilliant speech in support of the bill. 6e maintained that MNour -ndian goernment
is in its best state a grieance.NN 6e described the goernment of the company asNN one of
the most corrupt and destructie tyrannies that probably eer e.isted in the world.NN
MNthere is not a single prince , state or potentate, great or small in -ndia, with whom they
hae not come in to contact, whom they hae not soldQQQ there is not a single treaty
they hae eer made which has not been bro$enQQQ there is not a single prince or
state , who eer put any trust in the company who is not utterly ruined.NN according to
him, the serant of the company wereNN animated with all the aarice of age, and all the
impetuosity of youth , they roll in one after anotherL wae after waeL and there is
nothing before the eyes of the naties but endless, hopeless prospect of new flights of
birds of prey and passage with appetites continually renewing for a food that is
continually wasting QQQQ Their prey is lodged in %nglandL and the cries of -ndia are
gien to seas and winds to be blown about in eery brea$ing up of the monsoon, oer a
remote and unhearing ocean.NN
The bill was passed by the 6ouse of Commons by *0< oteNs to10< otes. 6oweer, it was
defeated by the 6ouse of Lords on account of the inference of +eorge111.
"ro-isions of "itt6s India Act: 1%);<
9
@1A The #ct proided for a 1oard of Control of si. ;riy Councilors. 1ut from the ery
beginning, the real power fell into the hands of the ;resident of the 1oard of Council.
@*A The 1oard of Control was gien comprehensie power of superision and control oer
-ndia administration.
@3A # Committee of 3ecretary consisting of three Directors was appointed to ma$e the place of
the Court Directors in political and military matters.
@/A The Directors were to retain the right of ma$ing appointment to different officers in -ndia
They were also to hae the power of reising and reiewing the acts of -ndia administration.
@'A The Court of ;roprietors was depried of its right of oer5 riding the decisions of the
court of Directors.
@6A The +oernor5+eneral5in5Council was gien the power and authority to superintend, control
and directs the seeral ;residencies. This proision increased the control the 1engal +oernment
oer the ;residencies. This made a uniform policy possible.
@8ABnder the Kegulating #ct, the Councils of the +oernment5+eneral consisted of four
members. The ;ittNs -ndia #ct proided that the Councils of the +oernor5+eneral and the
+oernors were to consist of three members, one of them being the local Commander5in5Chief.
@<A-ts was laid down that to pursue schemes of con5)uest and e.tension of dominion in -ndia were
measures repugnant to the wish, honour and policy of the 1ritish nation. 1ut it is to be noted that
in spite of this declaration the force of circumstances compelled the +oernors5+eneral to
interfere in the affairs of the -ndia 3tates.
@7The +oernor5+eneral5in5Council was not authori!ed to declare war or ma$e peace without the
permission of the Court of Directors.The ;residencies could declare war only with the approal of
the +oernor5+eneral in5Council. #ll treaties were to be made by the +oernor5+eneral5in5
Council.
@10AThe +oernor5+eneral was to be appointed by the Directors with the approal of the Crown,
but no such.
#pproal was re)uired in the matter of an appointment of the +oernors of the presidencies
and their Councils and also the members of the +oernor +eneralNs Council. The Crown could
recall the +oernor +eneral or the +oernors.
The goernor general -ndia, and among these authorities it is obious that dispatch and unity of
purpose can hardly by possibility e.ist.
System of dua, contro, $1%);01)*)+
10
-t is desirable to say a few words regarding the relation between the board of control and the court
of Directors. The ;ittRs -ndia #ct had not defined precisely the relation between two precise terms.
#lthough the entire direction, superision and control of the -ndian affairs had passed into the
hands of the 1ritish ministry the ;ittRs -ndia #ct tried to conceal this fact by means of shames and
fiction. That was due to the circumstances in which the #ct was passed. The language was $ept
ague in order to silence the opposition.
The ;itts -ndia #ct had put the directors under the control of the board of control. 1ut in spite of
their inferior position, they still retimed a lot of initiatie in the -ndian administration. That was
due to the circumstances in which the board of control and the court of directors wor$ed. The
directors had a big permanent staff and also the original records with them. The result was that the
directors were in a better position to formulate their proposals on -ndian administration then the
members of the board of control could do. Bnder the circumstances, the state that between 18</
and 1<33, about '0 per cent of the proposals of the directors were completely accepted by the
board of control. &oreoer, the Directors were also able to manage the members of the board of
control by sharing with them the ast patronage which was in their hands.
1ut all this does not mean that there was neer any conflict between the board of control and of
the directors and were not precisely defined, there power. 1ut in spite of this, the directors
continued to en9oy the power of patronage till it was ta$en away by the charter #ct of 1<'3.
# )uarrel arose between the directors and the board of control on the )uestion of sending 1ritish
troops to -ndia at the e.pense of the company. The board of control sent four 1ritish regiments.
The directors protested and )uestioned the legality of the action of board of control .They )uoted
the proisions of the #ct of 18<1 which were not repealed and which laid down that the company
could not be forced to pay the e.penses of any troops accept those re)uisitioned it. -n order to end
the controersy once for all, ;itt introduced a declaratory bill which put the supreme authority in
the hands of the bear of control, without which the board of control would be a nugatory
institution. "Earious ob9ections were raised against the 1ill. -t was contended that the unlimited
power of spending the money would mean "the confiscation of the whole of the companyNs
property.2The company had all tropes it needed and it was cheaper for company to raise troops in
-ndia then to send them from %ngland .-t was unconstitional for the crown to maintain any troops
for which the money was not oted by parliament The bill was passed in 18<< because both ;itt
and Dudes, ;residents of board of controlee, were bent crown which meant the ministry. -n -ndia
into the hands of the opposition, suspension and alarm of members of parliament, pit agreed to put
a few limitations on the power of the board of control. #lthough the board of control was gien
complete control oer the political affairs of the company, it was not gien the power to
correspond with -ndia independently of the directors. #ll the correspondence had to pass through
the court of directors 1ut the board of controlee was gien full access to all the records and the
correspondence of company had to be supplied copies of all orders and the dispatches to -ndia
and ice ersa. =o order could be sent to -ndia without being first submitted to the board of
control for approal. The board could ma$e change in them the dual control made the position of
the goernment +eneral ery difficult. 6e had to sere two masters home ia, the board of control
11
and the Court of Detectors appointing officers and initiated the policy. The ;resident could recall
those officers and thwart the action of the directors. The goernor. +eneral aoided both
authorities at home and did thin$ in his own way. The long distance is -ndia and %ngland helped
him this matter. The result was a lot of confusion which most harmful to result was a lot of
confusion which .There was on possibility for the +oernment of -ndia There was a change in the
attitude of the 6ouse of Commons toward the -ndian affairs. The -ndian affairs were $ept out party
politics and conse)uently there was no control the president of the board of control. Dual control
also made the administration of company cumbersome and dilatory. There was on efficient in the
wor$.
3ir Lee 4arner in his life of Lord Dalhousie ma$es the following obserations on the system of
due control. MThe by which the president of the boar controlled the -ndian goern meet from its
office in canon row through the court of directors in leaden hall street affords an interesting study
in the methods of compromise the law gae to the commissioners for the affairs of -ndian
authority to control,direct,and superintend allactc,opera tins and concerns which in any way
related to ciil on military goernments or reenues of -ndianan yet there missioners and the board
the full $nowledge of what was go in on, the Directors were bound by law to send to that foot by
the board, which signified the president, while he in turn sig $nifed the goernmenment or crown.
The wonder is that such a system eer wor$ed without intolerable friction .there was, howeer,
three chec$s which operated to preent any grae misuse of the arbitrary authority which, through
the president e.ercised in the name of a body of commissioners. -n the first place, he was acting
with $nowledge of his colleagues in the goernment or at any rate his acts inoled them in a
common responsibility. 3econdly, the Court of Director had its representatie in parliament.
-t is to be noted that the system of dual control continued up to 1<'< when it was abolished and its
place was ta$en oer by the 3ecretary of 3tate for -ndia and his council.
Act of 1%)6<
-t seems desirable to refer to change made in 18<6, 18<<, 1873 and 1<13. The change in 18<6
becomes necessary because Lord Cornwallis refused to come to -ndia as +oernor5+eneral unless
he was gien certain special power. The #ct of 18<6 made Cornwallis the Commander5in5Chief of
the -ndian 0orces. 6e was also gien the power to oer5ride his Council on his own responsibility.
Dec,aratory Act of 1%))2
Dudes were the first president of 1oard of Control. 6e was a friend of ;itt, the Hounger. 6e
adopted an attitude which was not li$ed by the Directors and no 4onder differences arose among
them. The 1oard of Control sent four Koyal Kegiments of troop to -ndia and changed their
12
e.panses to -ndia Keenues. The Director referred to the #ct of 18<1 and pointed out to the
illegality of the procedure. The result was that the Declaratory #ct of 18<< was passed by the
1ritish ;araiba meant. -t ested full power and supremacy in the 1oard of Control. This was a
definite step in transferring the power of the company to the Crown. -t was also proided in the
new #ct that the Directors should place the annual accounts of the Company before ;arliament. -n
matters of granting gratuity for serices and increments in salaries, the 1oard of Control was
re)uired to ma$e the approal of the Directors. #bout the new #ct, &ill (bsered thusI "The 1ill
is an absurdity which resembled a contradiction in terms.2
1
Charter Act of 1%'32
The %nglish %ast -ndia Company was gien a new Charter in 1873. The #ct of 1873 was a
ery long one. -t repealed many old laws and consolidated the e.isting laws. 6oweer, it did not
ma$e many alterations.
@1A The +oernor5+eneral and +oernors were gien the power to oer5ride their Councils.
This power had been gien specially to Cornwallis in 18<6.
@*A The control of the +oernor5+eneral oer the ;residencies of &adras and 1ombay was
emphasi!ed. -t was laid down that when a +oernor5+eneral went to a ;residency, he superseded
the +oernor.
@3A The +oernor5+eneral was gien the power to appoint a ice5 ;resident was to act in
place of the +oernor5+eneral when the latter was absent from 1engal.
@/A The Commander5in5chief was not to be a member of the Council of the +oernor5
+eneral unless he was specially appointed to be a member by the Court of Directors.
@'A =o leae of absence out of -ndia was to be allow5 cd to t he +oernor5+eneral,
+oernors, the Commander5-n5Chief and a few other high official during their tenure of office.
This proision continued till 17*'.
@6A The admiralty 9urisdiction of the Calcutta 3upreme Court was e.tended to the high seas.
@8A ;ower was gien to appoint member of the ciil 3erice as Gustices of the peace, to
appoint scaengers for the presidency towns, to ley a sanitary rate and to forbid the sale of li)uor
without s license.
@<A -t was proided that the two 9unior members of the 1oard of control need not be ;riy
Councilors.
@7A -t was proided that the payment of the members
#nd the staff of the 1oard of Control should be made out of the -ndian reenues.
1
Constitution history of indo-Pakistan by syed Abrar Hussain
13
This system continued up to 1717.
@10A The act tired to regulate the finances of the company. # particular amount was assumed
to be the annul surplus of the Company. (ut of that annual sure5plus, fiela$hs of pounds were to
go to the li)uidation of the debts of the Company, and a similar amount was to be absorbed in
increasing the diidend from < per cent to 10 per cent.
@11A The Charter of the company was renewed for *0 years. 3,000 tons were allowed for
priate trade, but this right was neer e.ercised.
Charter act of 1)132
The Charter #ct of 1873 had renewed the Charter of the Company for *0 years. 4hen the
time for the renewal of the Charter arried, there was a lot of agitation. The people demanded the
ending of the commercial monopoly of the Company. They were determined to hae a share in the
trade with -ndia. They pointed out the four adantages which the abolition of monopoly would
bring, ia, the e.tension of 1ritish Com5mercer and -ndustry, the preention of the -ndian trade to
other countries of %urope and #merica, the reduction the cost of trade, especially in transportation
and was housing charges, and the cheapening of the -ndian imports into 1ritain. 3talwarts li$e
warren hasting &alcolm and &unro defended and monopoly of the pony ultimately, the charter act
of 1<13 was past after many changes compromises
2
(ther countries of %urope and #merica, the reduction in the cost of trade, especially in
transportation and ware5housing charges, and the cheapening of the -ndian raw imports into
1ritain. 3talwarts li$e warren 6astings, &alcolm and manor defended the monopoly of the
company ultimatelyL the charter #ct of 1<13 was passed after many changes and compromises.
1. The act of 1<31 renewed the charter of the %ast -ndia Company for *0 years. The company
was depried of its monopoly of trade with -ndian. but she was to en9oy her monopoly of trade
with china for *0 years. The -ndian trade was thrown open to all 1ritish merchants, although
they had to wor$ under certain limitations. The directors were to grant licenses to those
%nglishman who applied for permission to tread with -ndia. Licenses were also to be gien to
persons who wanted to come to -ndia for the purpose of enlightening or reforming the -ndians
or for other lawful purpose. -f the directors refused to issue a license, the board of control
could be approached for the same purpose. The persons who tried as interlopers and liable to
punishment.
*. The #ct laid down certain rules for the application of the -ndian reenue. &aintenance of
forces was to be the first charge on the reenues of the company, payment of interest was the
second charge, and the maintenance of the ciil and commercial establishment was the third
charge. ;roisions were also made for the reduction of the debt of the company. The company
was re)uired to $eep its commercial and territorial accounts separately.
2
Bernstein, William J.,# 3plendid %.changeI 6ow Trade 3haped the 4orld, Atlantic Monthly Press, 2008, p. 238.
14
3. -t was proided that not more then *7thousand troops were to be maintained out of the
reenues of the company.
/. The company was authori!ed laws, regulations and articles of war for the -ndian troops. -t was
also authori!ed to proide for the holding of court martial.
'. The powers of superintendence and direction of the board of control were not only defined
but also enlarged to a ery great e.tent
6. The local goernment in -ndian were empowered to pay impose ta.es on persons, and punish
those whose who did not pay them. These powers were to be e.ercised by the local
goernment sub9ect to the 9urisdiction of the 3upreme Court
8. The act proided for the religious learning and education of the people of -ndia. # sum of
K3.100, 000 a year was to be set apart and applied to the reial and to the improement of
literature and the encouragement of the learned naties of -ndia and for the introduction and
promotion of $nowledge of the sciences among the inhabitants of the 1ritish territories in
-ndia.
<. The act also made proision for the training of the ciil and military serants of the company
.the college at 6ailey bury and military school at disrobe were to be maintained and brought
under the authority of the board of control. The colleges at Calcutta and madras were also to
wor$ according to the regulation of the board of control.
7. The act proided for the appointment of a bishop and three arch5deacons for the religious
welfare of the %uropeans in -ndia.
10. The act made special proisions for the adminis5 tration of 9ustice in cases in which 1ritishers
and -ndians were inoled. 3pecial penalties were proided for theft forgery and coinage
offences.
Charter acts of 1)33and1)*3
Circumstances leading to the charter of 1<33.the charter of the company had been gien in 1<13.
4hen he time for its renewal drew nearer, there was a lot of agitation for the abolition of the
company and the ta$ing.
#fter twenty years of the #cts of 1<33, the time approached for the renewal of the CompanySs
Charter. 4ith the passage of time there was a growing demand that the double +oernments of the
company in %ngland should be ended. -t has also been declared that the Court of Directors and the
1oard of control only resulted in the unnecessary delay in the business transactions and led to
undue e.penditure. #n application was sent to the presidencies of -ndia to appoint a secretary of
state with a Council. The 3ecretary of state would be entrusted to handle all business relating to
15
-ndia
3
.
-t had been ideated that the e.isting legislatie system under the Charter #ct of 1<33 was
completely inade)uate. &oreoer after the #cts of 1<33 there were territorial and the political
changes in -ndia. 3ind and ;un9ab had been anne.ed to the companySs territory. # number of
-ndian 3tates e.cept ;egu in 1urma became ictim of DalhousieSs policy of anne.ation. +radually
there were the demands of the decentrali!ation of power and for giing the -ndian people the
shares in the administration. -t was under these circumstances that the 1ritish parliament decided
to renew the charter of the company in the year 1<'3. The company in the preceding year
appointed two Committees to loo$ into the affairs of the company. (n the basis of their reports the
charters #ct of 1<'3 was framed and passed.
1. This #ct centrali!ed the administration of the country. +oernor5 the goernor5general of
-ndia. The goernor5general >in5council was gien the power to control, superintend and
direct the ciil and military affairs of the company general of 1engal became
*. This #ct brought about complete legislatie centrali!ation. 1efore 1<33, the power of the
central goern5ment was inade)uate and ill5defined. -t had no power toma$e laws for the
whole country on matters of common concern.
3. #ccording to the #ct of 1<33, 1ombay and madras lost their rights to ma$e their own laws.
+oernor5general5in5council became the only law5ma$ing authority in -ndia.
/. =o one could refuse to enforce them. +oernor5general5in5council could ma$e #rticles of
war and code of military discipline, and proide for the ad5ministration of 9ustice.
'. The laws passed by the goernment of -ndia were to be called #cts. 1efore 1<33, the
enactments of the 1ombay, madras and 1engal council were $nown as regulations.
6. The #ct added another member to the %.ecutie council of the +oernor5+eneral. 6e was
to be $nown as the law member.
3
Constitution history of indo-Pakistan by syed Abrar Hussain
16
8. 6e had no ote in the council. 1ut the law member practically became a regular member of
+oernment and too$ part in all its administratie deliberations.
<. The number of members of the Councils of the +oernors of 1ombay and madras was
reduced to two.
7. 1ombay and &adras were to $eep their to $eep separate armies under commanders5in5
chief but they were to be under the control of the central goernment.
10. The #ct proided for the codification of law in before 1<33, law wereTTso imperfect that in
many aces it was )uit impossible to ascertain. 4hat the law was.
11. 3ection <8 of the #ct declared that no -ndian sub9ect of the Company in -ndian was to be
-ndia was to be debarred from to the Direction the ob9ect of this proision is not to
ascertain )ualification but to remoe a dis)ualification.
1*. %uropean were permitted to come to -ndia settle .1ut the had to register themseles on
landing in -ndia.
13. +oernment was permitted to come to -ndia to ta$e measure for the abolition of slaery.
This 4es done in 1</3.
1/. The #ct proposed to diide the ;residency of %ngel into two presidencies, i!., presidency
of agar and presidency of 1engal .6oweer, this reision was suspended by an #ct of 1<3'
which authori!ed the appointment of a lieutenant >+eneral of -ndia was to continuous
goernor of 1engal without presidency Council.
Critics point out that the #ct of 1<33 was passed before empty benches and in uninterested
audience of the house of Common 1ut charter renewal by calling for presidency granted,
illumination the presidency display of firewor$ , which were granted and brought much
satisfaction to a populace -ndia by Thompson and +arret.
#ccording to 6erbert Cowheel, thus there was established in -ndia one central legislatie authority
in place of the three councils which had before e.isted. The new Council was armed with
17
authority to pass Laws and Kegulation for the whole some 1ritish territories modification till1<61,
when it again gae way to the prealent desire for local Legislatie Councils.
Chatter Act of 1)*32
The chatter #ct of 1<'3 was the last of its $ind. -t was also presidency great landmar$ in the
constitutional history of -ndia. The separation of the e.ecutie and the legislatie function was
carried further by the proision of additional member for the purpose of legislation.
@1A The Law member was made presidency full member of the e.ecutie Council of the +oernor
>+ernal.
@*A The +oernor5 +ernal was made presidency full member of the %.ecutie Council of the
+oernor5+eneral.
@3A Discussion of measure which had already begun, ways thrown open to the public.
@/A Different legislatie measure was entrusted to select committees for e.amination. Thus, the
frame5wor$ of the central legislature was completed.
@'A The consent of the +oernor5+eneral was made necessary for all legislature proposals.
@6A ;roinces were allowed to the send one representatie each to the Central Legislatie
Council. =o measure concerning any proince was tube considered unless the representatie from
all that ;roince was present.
@8A ;roince was made for the appointment of presidency separate +oernor for the presidency of
the 1engal, and until that was made, the Court of Director might authori!e the +oernor5+eneral
of -ndia in Council to appoint presidency coenanted serant of ten year standing as the
lieutenant5+oernor of the proince. The latter appointment was made as it the two.
@<A ;ower was gien to the Court of director to constitute presidency new presidency .this
proision increased the control of the 1engal +oernment oer the presidencies. This made
presidency uniform policy possible.
18
Keference
1ernstein, 4illiam G.,# 3plendid %.changeI 6ow Trade 3haped the 4orld, #tlantic
&onthly ;ress, *00<, p. *3<.
Constitution history of indo5;a$istan by syed #brar 6ussain
0o., %. T. @*00<A. Fing of the ;iratesI The 3washbuc$ling Life of 6enry %ery. LondonI
Tempus ;ublishing. -31= 78<5058'*/5/81<56
Constitution history of indo5;a$istan by syed #brar 6ussain

19