Mod 1 History
Mod 1 History
Mod 1 History
Company Rule refers to the rule of the British East India Company in India. The Company Rule
in India was from 1773 to 1858. The British East India Company was set up in 1600 as a trading
company and became a ruling organization in 1765
Background
The East India Company, which had the exclusive right to trade in India under a charter granted
by Queen Elizabeth I, arrived in India in 1600 as traders.
The Company secured the 'Diwani' rights (revenue and civil justice rights) of Bengal, Bihar, and
Orissa in 1765. This began its existence as a territorial authority.
Following the 'sepoy mutiny' in 1858, the British Crown seized direct responsibility for India's
governance.
From 1773 until 1858, a few key laws were enacted to regulate the British East India Company's
operations and help their authority over India. The details of these Acts are mentioned below.
British Parliament passed Regulating Act, 1773 to regulate the British East India Company’s
Indian territories, especially in Bengal. The Regulating Act of 1773 banned the employees of
East India Company from doing any kind of private trade or from receiving gifts or bribes from
the "natives". This was the first step taken by the British government to control and regulate the
affairs of the East India Company in India, as well as the first time the Company's political and
administrative functions were recognized.
The major goal of enacting the Regulating Act was to keep track of the Company's operations in
India and England, as well as to eliminate any existing flaws.
Key Provisions
Warren Hastings was the first Governor-General, and he was joined by four boards of
administrators.
Only the British monarch on the recommendation of the Court of Directors could remove these.
The five-year term for board members had to be completed by the members of the board of
directors.
High Court Inauguration: The High Court was inaugurated in Calcutta. There were four judges
in total, including the Chief Justice
Primary & Appellate Jurisdiction: Primary and appellate jurisdiction was assigned to the
Supreme Court.
Sir Elijah Impey served as the Chief Justice, while Lemester, Chambers, and Hyde were the
other judges of the court established in 1774.
Prohibited from Bribes & Gifts: Military and civilian officers under the Company were
prohibited from accepting any gifts, donations, or prizes from private businesses and Indians,
according to this Act.
Term & Members: This law established that the board of directors' term would be 4 years and
the number of members would be increased to 24, with 6 members having a one-year leave of
absence.
Court of Directors: The Crown's authority was further enhanced by the "Court of Directors" via
this act.
Civil & Military Affairs: India's civil and military affairs as well as its revenues were required to
be disclosed to the British Crown.
Pay Rise: The company's officers and staff were given a pay raise.
The parliamentary control on the company proved ineffective because there was no effective
mechanism to study the reports sent by the Governor-General in Council.
This Act did not stop corruption among the officials of the company.
The main goal of enforcing the Regulating Act of 1773 is outlined below.
To compensate the Governor-General and the Officers of the Council who acted on their
directives to obstruct the Supreme Court's proceedings.
To clear up the ambiguities and difficulties produced by the Regulating Act and the Charter,
which essentially divided the government and the courts.
To assist the governments of Bengal, Bihar, and Orissa in ensuring that income may be
collected with assurance at any time.
Key Provisions
Amending Act of 1781 - Key Provisions (Major Feature)
This was the first time the British Parliament intervened directly in the company's administration.
Curbing Corruption
Reforms to curb corruptions
This act brought prohibition on the servants of the company from engaging in any private trade
or accepting bribes and gifts from the local people. The directors of the company were to be
elected for a period of five years and one-fourth of them used to retire every year. There was no
procedure for re-election available.
Pitt's India Act aimed to overcome the deficiencies of the 1773 Regulating Act by placing the
East India Company under British government supervision in India.
Key Provisions
The Pitt's India Act of 1784 separated the East India Company's political and corporate
activities.
Only the Company's public affairs and administration in India were subjected to increased
government monitoring.
The Company was represented by the Court of Directors, and the British government was
represented by the Board of Control, in this dual system of control.
The statute required all civil and military officers to declare their assets in India and the United
Kingdom within two months of joining.
The number of members on the Governor-council General's has been decreased to three. The
Commander-in-Chief of the British Crown's army in India would be one of the three.
A fractious council and the governor general's inability to veto its decisions could render him
ineffective, especially if his authority to use troops has been limited.
This was due to the fact that the limits between government monitoring and the company's
powers were ill-defined and extremely subjective from the start.
The Board of Control, the Court of Directors, and the Governor General in Council were all
given jurisdiction under the statute, but no clear boundaries could be established because the
issue was subjective rather than objective.
Humanitarian appeals for better treatment of local people in British-occupied territories forced
the British government to act. The Board of Control was accused of nepotism.
The company's dominance over the British possessions in India was maintained by this Act.
The company's trade monopoly in India was extended for another 20 years.
The Act declared that "gain of sovereignty by Crown subjects is on behalf of the Crown and not
in its own right," implying that the company's political activities were carried out on behalf of the
British government.
The Governor-General now has more authority. Under certain circumstances, he might override
his council's judgment
He was given power over the rulers of Madras and Bombay as well.
When the Governor-General was in Madras or Bombay, the governors of Madras and Bombay
were superseded in authority.
The Governor-General could designate a Vice President from among the civilian members of
his Council when he was away from Bengal.
The Board of Control's membership changed. It was to consist of a President and two junior
members who were not necessarily Privy Council members.
The corporation was now responsible for the payment of the employees and the Board of
Control.
After deducting all costs, the corporation was required to pay the British government Rs.5 lakhs
from Indian revenue each year.
Senior executives of the company were prohibited from leaving India without permission. It
would be deemed a resignation if they did so.
The corporation has been given the right to issue trade licenses to individuals and corporate
workers in India. 'Privilege' or 'country trade' was the term for this. As a result, opium was
shipped to China.
This Act separated the company's revenue administration and judicial functions, resulting in the
demise of Maal Adalats (revenue courts
The Crown's jurisdiction over British colonies in India was asserted by this Act.
The rule of the corporation was prolonged for another 20 years. Except for tea, opium, and trade
with China, their trade monopoly was broken.
It gave local governments the ability to tax those who were under the Supreme Court's
jurisdiction, and it set the company's dividend at 10.5 percent.
The Act allowed Indian courts more authority over European British subjects.
This act also gave missionaries freedom to enter India and engage in religious proselytization.
In accordance with the Act, the missionaries were successful in obtaining the appointment of a
Bishop for British India, with his headquarters in Calcutta.
The act called for a financial grant to support the rebirth of Indian literature and the
advancement of science, as well as greater responsibility for the corporation in the education of
the Indians under their control.
It was decided to set aside one lakh rupees for this purpose.
Office of Governor-General
The Governor-General of Bengal was made the Governor-General of India which led to the
Centralization of Administration.
The Governor-General of Bengal was elevated to the position of Governor-General of India, with
exclusive legislative powers.
Bombay and Madras presidencies were drained of their legislative powers.
Civil and military powers were granted to India's Governor-General.
For the first time, the Government of India was established, with authority over the entire
territory possessed by the British in India.
Lord William Bentick became the first governor-general of India
The company was allowed to retain its territorial possessions as trustee for “ His Majesty, his
heirs, and successors
The president of the Board of Control was replaced by Minister for Indian affairs
The act contained a provision for the creation of the presidency of Agra and Fort William by the
division of the Bengal presidency but this provision never came into existence.
Financial Centralization
An attempt to codify laws was made with the charter act of 1833.
Section 53 of the charter act of 1833 provided for the appointment of a Commission known as
the Law Commission. The main aim of the Law Commission was the codification and
consolidation of Indian law.
In a step towards codifying laws, the first Law Commission was appointed in 1834 under the
chairmanship of Lord Macaulay, the other three members were J.M. Madeira, G.W. Anderson,
and C.H. Cameron represented the presidencies of Calcutta, Madras, and Bombay respectively.
The Law Commission submitted the draft of the Penal Code to the government in 1837 also
called as “Macaulay Code” However the draft had to wait for full implantation till 1860 due to the
revolt of 1857.
As a result of the recommendations, the code of civil procedure was introduced in 1859 followed
by the Indian penal code in 1860 and the criminal procedure code in 1862
The act removed restrictions as to religion, color, caste, and creed and provided for the free
participation of Indians in the administration of the country.
The Charter act of 1833 became the first act that made provision to freely admit the natives of
India to share an administration in the country.
The act has given the power to the Court of Directors to nominate annually 4 times as many
candidates as there were vacancies through the process of competitive examination
It was an attempt to introduce a system of open competition for civil services. However, this
system of open competition was not effectively operated in the near future.
Abolition of Slavery
The act also provided for the diminution of slavery existing in British India.
Governor General-in-Council was directed to adopt measures for the end of slavery prevalent In
IndiaSlavery was abolished in India with the act Act V of 1843
The East India Company's Charter Act 1853 was the company's last charter act. The Charter
Act 1853 renewed the powers of the Company and allowed it to retain territories and revenues
of Indian territories in the trust of the crown for an unspecified period unlike the earlier charter
acts of 1793, 1813, and 1833, which renewed the charter for 20 years. Lord Dalhousie was the
Governor-General of India when the charter act of 1853 was passed. The Charter Act of 1853
has its major significance as it marks the beginning of the Parliamentary system in India.
Key Provisions
The Charter Act (1853) – Key Provisions
Legislative powers
For the first time, the Governor-legislative General's Council's and executive functions were
separated.
It provided for the addition of six new members to the council, known as legislative councilors.
To put it another way, it created a distinct Governor General's Legislative Council, which
became known as the Indian (Central) Legislative Council.
The council's legislative branch acted as a mini-Parliament, following the same procedures as
the British Parliament.
For the first time, legislation was considered a distinct government function, needing specialized
apparatus and procedures.
The procedure of the Governor-General’s Council in matters of legislation was to be the same
as followed by the British Parliament. Members could ask the question and discuss the policies
of the Executive Council
The right to veto a bill passed by the Council in its legislative capacity was given to the
Executive Council.
The legislative business was conducted in public and the discussion was oral.
Bills were referred to the Select Committee rather than to any individual member.
The number of the members of the court of directors was reduced from 24 to 18 out of which 6
were to be nominated by the Crown.
By the Act of 1853, the Court of directors was disposed of their power of patronage, and the
high posts were made subjects to the competitive examinations where no discriminations would
be made on the basis of caste, creed, and religion.
The Macaulay Committee of 1854, which was the Committee for the Indian Civil Service,
enforced this scheme.
The court of Directors, by the Act also could alter the boundaries of the existing states and
incorporate the newly acquired state. This provision was made to create a separate Lieutenant
Governorship for Punjab in the year 1859.
The Act empowered the British Crown to appoint a Law Commission in England to examine the
drafts and reports of the Indian Law Commission which had ceased to exist by then.
Law member was now made full member of the Governor-General’s Executive Council
Council’s membership was enlarged by the inclusion of six members
The representatives from the Provinces were to be civil servants of not less than ten years
standing.
The Charter Act (1853) - Objective
The Charter Act of 1853 renewed the powers of the Company and allowed it to retain territories
and revenues of Indian territories in trust for the crown. However, this Charter Act did not grant
commercial privileges for the specific period of time as the preceding Charter Acts had provided.
Key Provisions
The Charter Act (1853) – Key Provisions
Legislative powers
For the first time, the Governor-legislative General's Council's and executive functions were
separated.
It provided for the addition of six new members to the council, known as legislative councilors.
To put it another way, it created a distinct Governor General's Legislative Council, which
became known as the Indian (Central) Legislative Council.
The council's legislative branch acted as a mini-Parliament, following the same procedures as
the British Parliament.
For the first time, legislation was considered a distinct government function, needing specialized
apparatus and procedures.
The procedure of the Governor-General’s Council in matters of legislation was to be the same
as followed by the British Parliament. Members could ask the question and discuss the policies
of the Executive Council
The right to veto a bill passed by the Council in its legislative capacity was given to the
Executive Council.
The legislative business was conducted in public and the discussion was oral.
Bills were referred to the Select Committee rather than to any individual member.
Salary of the members
The Charter Act of 1853 provided that the salaries of the members of the Boards of Control, its
Secretary, and other officers would be fixed by the British government but would be paid by the
Company.
Power was given to the Court of Directors to constitute a new Presidency. Power was also given
to alter and regulate from time to time the limits of the various provinces. This power was used
to create Punjab into a Lieutenant-Governorship.
The Indian Mutiny of 1857-59 was a widespread but unsuccessful rebellion against the rule of
British East India Company in India which functioned as a sovereign power on behalf of the
British crown.
The Revolt
It was the first expression of organised resistance against the British East India Company
It began as a revolt of the sepoys of the British East India Company’s army but eventually
secured the participation of the masses.
The revolt is known by several names: the Sepoy Mutiny (by the British Historians), the Indian
Mutiny, the Great Rebellion (by the Indian Historians), the Revolt of 1857, the Indian
Insurrection, and the First War of Independence (by Vinayak Damodar Savarkar).
Political Cause
British policy of expansion: The political causes of the revolt were the British policy of expansion
through the Doctrine of Lapse and direct annexation.
A large number of Indian rulers and chiefs were dislodged, thus arousing fear in the minds of
other ruling families who apprehended a similar fate.
Rani Lakshmi Bai’s adopted son was not permitted to sit on the throne of Jhansi.
Satara, Nagpur and Jhansi were annexed under the Doctrine of Lapse.
Jaitpur, Sambalpur and Udaipur were also annexed.
The annexation of Awadh by Lord Dalhousie on the pretext of maladministration left thousands
of nobles, officials, retainers and soldiers jobless. This measure converted Awadh, a loyal state,
into a hotbed of discontent and intrigue.
Doctrine of lapse:
The notable British technique called the Doctrine of Lapse was first perpetrated by Lord
Dalhousie in the late 1840s.
It involved the British prohibiting a Hindu ruler without a natural heir from adopting a successor
and, after the ruler died or abdicated, annexing his land.
To those problems added the growing discontent of the Brahmans, many of whom had been
dispossessed of their revenues or had lost lucrative positions.
The rapidly spreading Western Civilisation in India was alarming concerns all over the country.
An act in 1850 changed the Hindu law of inheritance enabling a Hindu who had converted into
Christianity to inherit his ancestral properties.
The people were convinced that the Government was planning to convert Indians to Christianity.
The abolition of practices like sati and female infanticide, and the legislation legalizing widow
remarriage, were believed as threats to the established social structure.
Introducing western methods of education was directly challenging the orthodoxy for Hindus as
well as Muslims
Even the introduction of the railways and telegraph was viewed with suspicion.
Economic Cause
In rural areas, peasants and zamindars were infuriated by the heavy taxes on land and the
stringent methods of revenue collection followed by the Company.
Many among these groups were unable to meet the heavy revenue demands and repay their
loans to money lenders, eventually losing the lands that they had held for generations.
Large numbers of sepoys belonged to the peasantry class and had family ties in villages, so the
grievances of the peasants also affected them.
After the Industrial Revolution in England, there was an influx of British manufactured goods into
India, which ruined industries, particularly the textile industry of India.
Indian handicraft industries had to compete with cheap machine- made goods from Britain.
Military Causes
An Indian sepoy was paid less than a European sepoy of the same rank.
They were required to serve in areas far away from their homes.
In 1856 Lord Canning issued the General Services Enlistment Act which required that the
sepoys must be ready to serve even in British land across the sea.
Immediate Cause
The Revolt of 1857 eventually broke out over the incident of greased cartridges.
A rumour spread that the cartridges of the new enfield rifles were greased with the fat of cows
and pigs.
Before loading these rifles the sepoys had to bite off the paper on the cartridges.
Both Hindu and Muslim sepoys refused to use them.
Lord Canning tried to make amends for the error and the offending cartridges were withdrawn
but the damage had already been done. There was unrest in several places.
In March 1857, Mangal Pandey, a sepoy in Barrackpore, had refused to use the cartridge and
attacked his senior officers.
Limited uprising: although the revolt was fairly widespread, a large part of the country remained
unaffected by it.
The large princely states, Hyderabad, Mysore, Travancore, and Kashmir, as well as the smaller
ones of Rajputana, did not join the rebellion.
Limited resources: the rebels lacked resources in terms of men and money. The English, on the
other hand, received a steady supply of men, money and arms in India.
No participation of the middle class: The English educated middle class, the rich merchants,
traders and zamindars of Bengal helped the British to suppress the revolt.
Results of The Revolt
End of company rule: the great uprising of 1857 was an important landmark in the history of
modern India.
The revolt marked the end of the East India Company’s rule in India.
Direct rule of the British Crown: India now came under the direct rule of the British Crown.
This was announced by Lord Canning at a Durbar in Allahabad in a proclamation issued on 1
November 1858 in the name of the Queen.
The Indian administration was taken over by Queen Victoria, which, in effect, meant the British
Parliament.
The India office was created to handle the governance and the administration of the country.
Religious tolerance: it was promised and due attention was paid to the customs and traditions of
India.
Administrative change: the Governor General’s office was replaced by that of the Viceroy.
The rights of Indian rulers were recognised.
The Doctrine of Lapse was abolished.
The right to adopt sons as legal heirs was accepted.
Military reorganisation: the ratio of British officers to Indian soldiers increased but the armoury
remained in the hands of the English. It was arranged to end the dominance of the Bengal army.
The Revolt of 1857 conformed as a jolt or a push to the British government to establish their
supremacy in India. With the widespread resentment against the various British policies, people
started violently blaming the British for such unfavourable policies that weren’t of any use to the
Indian people. Seeking to maintain an environment of Peace in the country, the Britishers
decided to transfer the permanent hold of the East India Company over the country to the British
Crown. Soon, Queen Victoria came to Delhi and it was decided to proclaim her as the Queen of
India and from then onwards all the chiefs, princes and the people of India would be working
under her authority. The Act of proclaiming Queen Victoria as the Queen of India is popularly
known as the Government of India Act, 1858.
With the Queen’s proclamation, it was decided to grant the same status to the Native of India as
the other subjects. Further, the declaration objectified various societal issues like racial
discrimination that prevailed in the country and focused on removing all these evil of
underdevelopment. Apart from this, it was also assured that the British Crown would create
equality and all the people would be equal in the eyes of the law. With the extension of British
rights to the Indians as well, the act was widely accepted and even regarded as the Magna
Carta of India by Gandhi Ji.
The view at the Delhi Durbar was the first time that many such prominent maharajas, nawabs
and other dignitaries had gathered to pay homage to Queen Victoria for her undertaking of the
Indian authority. In the commemoration of the proclamation, each of the rulers of India was
delivered a gold memorial banner and a medal as a personal gift from the Queen herself.
However, these gifts were considered as a present to show that the Indians were subjugated by
the British Crown and were under their control for a long time.
2) Even if the British Crown had a hold over the Indian administration, due respects were
reimbursed to the customs, usages and ancient rites of the people of India.
3) It was decided to grant the same status to the Natives of India as the other subjects, the
British people.
4) The declaration objectified various societal issues like racial discrimination that prevailed in
the country and focused on removing all these evil of underdevelopment.
5) The proclamation also defined the prosperity of the Indians as the strength of the Britishers
and the contentment of the Indians as the security for the Monarch’s power in India.
The Government of India Act, 1858 was passed in a parallel setting with the Queen’s
proclamation in India. Under this, it was claimed that India would now be governed directly by
the Britishers under their British Crown and all the authorities lay in their hands. The
Government of India Act of 1858 had certain provisions. Some of them are:
1)Under this Act, the rule of the East India Company was liquidated and passed on to the British
Crown.
2) The surveillance including the Board of Control and the Court of Directors were discarded by
this Act.
3) The Secretary of State would act as the British MP, who would work under an advisory
committee of 15 members.
4) The Secretary of State would also act as the arbitrator and the channel between the British
administration in Britain and the Indian government.
5) The dual government policy, introduced by Pitt’s India Act was removed by the Government
of India Act, 1858.
The representative of the British government in India was the Governor General/ Viceroy. ( First
Governor-General and Viceroy of India: Lord Canning )
The Viceroy and the Governors of the various presidencies were appointed by the Crown. The
Viceroys were to be assisted by an Executive Council.
It was also decided that the remaining Indian Princes would have their independent status
provided they accept British rule and British suzerainty.
Pardon would be granted to all the Indians who participated in the mutiny except those who had
killed British subjects.
The Indian Civil Services was to be established to administer the country. There was a provision
for Indians to be accepted to the military as well.
It was dominated by absolute Imperial control with no representation for the people of India.
The Secretary of State was the supreme authority and had a free hand in the administration of
India and was responsible only to the British parliament.
After the great revolt of 1857, the British Empire felt the urgent need of seeking the cooperation
of its Indian subjects in the administration of India.
In pursuit of this policy of association, three acts were enacted in 1861, 1892, and 1909.
The Indian Councils Act of 1861 is an important landmark in the constitutional and political
history of India..
Following the 1857 Mutiny, there was a widespread belief in England that establishing a
government in India without the participation of Indians in the administration would be extremely
impossible.
The 1833 Charter Act centralized the legislative process. It had only one representative in each
of the four provinces, and it failed to pass legislation that was tailored to the needs of the
people.
The Governor General in Council was failing in his legislative duties and was unable to perform
effectively due to lengthy procedures that caused delays in enactment.
Provisions
The trend of decentralisation was initiated by this act, which restored the legislative powers of
the Bombay and Madras presidencies.
Thus, the centralising trends that began with the Regulating Act of 1773 and culminated with the
Charter Act of 1833 were reversed.
This policy of legislative devolution resulted in the grant of almost complete internal autonomy to
the provinces in 1937.
By associating Indians with the law-making process, a new beginning was made for
representative institutions.
Providing for the provision of the Viceroy nominating some Indian members to his extended
council.
Subsequently, three Indians were included in this 1862 Legislative Council - the Raja of
Benaras, the Maharaja of Patiala and Sir Dinkar rao.
Any bill relating to public revenue or debt, the military, religion, or foreign affairs could not be
passed without the Governor-General's approval.
During emergencies, the Governor-General also had the authority to issue ordinances without
the approval of the council.
It provided for the establishment of the legislative councils for Bengal, North-Western Frontier
Province and Punjab.
It empowered the Viceroy to make rules and orders for a better and more convenient
transaction of business in the council.
It recognized the Portfolio System (introduced by Lord Canning in 1859) under which, a member
of the Viceroy’s Council was made in-charge of one or more departments of the Government
and was authorised to issue final orders on behalf of the council on the matters of the
concerned department.
It also empowered Viceroy to issue ordinances, without the consent of the Legislative Council
during an emergency. The ordinance will be valid for a period of 6 months.
Indian Councils Act of 1892 was passed with the objective of increasing the size of various
legislative councils in India thereby increasing the engagement of Indians with respect to the
administration in British India. Following the founding of the Indian National Congress, the
Indian Councils Act of 1892 represents a significant milestone in India's constitutional and
political history.
Following the Great Revolt of 1857, the British Empire realised that it needed to enlist the help
of its Indian subjects in administering India.
In addition, as nationalism grew in popularity, Indians became more cognizant of their rights.
Following the founding of the Indian National Congress, the Indian Councils Act of 1892
represents a significant milestone in India's constitutional and political history.
After the Act of 1861, the growth of the Indian Constitution is essentially a story of political
discontent and agitation interspersed with Council Reforms.
The reforms that were reluctantly accepted were always found to be insufficient, resulting in
dissatisfaction and a demand for more reforms.
As a result of the developing sense of nationalism, the Indiana National Congress offered a
number of demands to the British government after its creation in 1885.
During the 1885-1889 session of the Indian National Congress, the Indian National Congress
made various demands.
The following were the main demands:
Lord Dufferin, the Viceroy at the time, convened a commission to investigate the situation. On
the other side, the Secretary of State opposed the idea of a direct election. However, he agreed
to indirect electoral representation.
Key Provisions
It raised the number of (non-official) members in the Central and Provincial Legislative Councils
while keeping the official majority.
Bombay - 8
Madras - 20
Bengal - 20
North Western province -15
Oudh - 15
Central Legislative Council minimum - 10, maximum 16
The act made it clear that the members appointed to the council were not there as
representatives of any Indian body, but as nominees of the Governor-General.
Members could now debate the budget without having the ability to vote on it. They were also
barred from asking follow-up questions.
The elected members were permitted to discuss official and internal matters.
The Governor General in Council was given the authority to set rules for member nomination,
subject to the approval of the Secretary of State for India.
Provincial legislative councils were given more powers, including the ability to propose new laws
or repeal old ones with the Governor General's assent.
In the event of the Central legislature, the Governor was given the authority to fill the seat, while
in the case of the provincial legislature, the Governor was given the authority