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UNIT 23 CONSTITUTIONAL
DEVELOPMENTS (1757-1858)
Structure
23.0 Objectives
23.1 Introduction
23.2 Background
23.3 The Regulating Act, 1773
23.4 Pitts' lndia Act, 1784
I 23.5
23.6
23.7
Charter Act of 1793
Charter Act of 1813
Charter Act of 1833
i
23.8 Charter Act of 1853
I 23.9
23.10
Government of lndia Act. 1858
Let Us Sum Up
23.1 1 Answers to Check Your Progress Exercises

23.0 OBJECTIVES
After reading this Unit you will :
become ramiliar with the important constitutional devqlopnlents in the first
century of Hritish rule
trace the transition from Company's rule to rule by the Crown
acquaint yourself with the stages in the evolution of the structure of Government,
and
bring out the link between the constitutional changes and the economic and
political interests behind them.

23.1 INTRODUCTION
The English East lndia Company was essentially a commercial body. Following the
principles of mercantilism and to ensure monopolistic profit the company needed
political power hence political activities which resulted in acquiring revenue-yielding
territories. After 1757 it was in a privileged position of yielding political power over
a large section of the population of India.
The authority which controlled the Company was situated far away from lndia in
Britain. The Hritish Ciovernment faced many problems from this situation and
relationship. The Company had becomea great empire combining the role of trader
and an overlord. It was now clear that the power and sovereignty of the Indian
empire was vested in the Company. 7 hr British Government decided that it could no
longer be allowed to remain outside the ambit of the state. Even Clive and Hastings
had held that constitutional relations with the Crown might be desirable.

23.2 BACKGROUND
Establishing the sovereignty of the Crown in place of the Company was yet too bold
a siep t o be taken. That would have directly put a n enormous mass of patronage in
the hands of the government. Again it would have caused much bitterness in India
and among European hations. The wise step was to subject the Company to control
on the basis of current doctrines of constitutional law.
A select committee of Parliament was appointed in April, 1772 t o enquire into the
state of affairs in India. In August the Company begged the Government for a loan
Impact of British: Rule : of 6: 1,00,000.It was surprising that although the servants of the Company collected
Polity and Society
wealth, the Company faced serious financial crisis.
The problem before the British Government was to define the relationsh~pof East
lndia Company and its possessions with the British Government. Another problem
was td determine the way the Company's authorities in Britain were to control the
large number of officials and soldiers working for it in far away India. The question
of providing a single centre of control over farspread British possessions in Bengal,
Madras and Bombay was also causing great concern.
The form of the relationship of the East lndia Company and ~ t possessions
s with
the British Government was most important because it was closely connected with -
party and parliamentary rivalries in Britain. English statesmen were politically
ambitious and English merchants were commercially greedy. Bengal had yielded rich
resources into the hands of the Company. Fabulous wealth brought home by its
officials caused jealousy in the British natian. Mirchants, the growing section of
manufacturers and newly risen 'free enterprisers' were striving to have a share in the
profits of Indian trade and wealth coming from India. Why should East lndia
Company alone enjoy this? They wanted to put a n end to the monopoly of trade
held by the Company. With this end, they criticised the way the Company
administered Bengal.
Many political thinkers and statesmen of Britain were afraid that the Company and
its powerful rich officials would lower the standard of morality of the English nation
and increase corruption in British politics. The seats in the House of Commons were
bought by the Company for its agents. It was feared that the Company, with the
help of money brought from India, might achieve dangerous supremacy in the
British Government.
A new School of economists who were advocating free trade condemned exclusive
companies. Adam Smith in his book, 'Wealth of Nations' wrote that exclusive
companies were causing harm both to countries which estabIish them and the
countries that they govern.
The East India Company's position was unique a t home. King George-Ill patronised
it. It fought with the help of its friends in Parliament. The Parliament decided on a
compromise. A balance was worked out. The British decided t o control the
Company's lndian administration in the interest of Britain's influential elite class as a
whole. The Company was allowed t o continue with its monopoly of Eastern ttade.
The Directors of the Company were given the control of Indian administration.
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23.3 THE REGULATING ACT, 1773

In these circumstances. the Parliament passed its first important Act in 1773. called
the Regulating Act t o control the Company's Administration. The Act made changes
in the constitution of the Company at home; the whole of the territories in India
were subjected to some degree of control.
The provision was made in a very efficient manner for the government t o keep
supervision over the Company. Changes were made in the Constitution of the Court
of Directors of the Company. It was required that it should submit to the
Government all communications about civil and military affairs received from Bengal
and revenues of India.
In the field of executive government. the status of Governor of Bengal was raised t o
Governor General. His Council would consist of four members. The Governor
General in Council was given the power to superintend and control the presidencies
of Madras and Bombay in matters of war and peace. In this body was vested the
civil and military administration of the presidency, and government of all the
territorial acquisitions and revenues in the kingdoms of Bengal. Bihar and Orissa.
The Governors of Madras and Bombay were required t o send regularly. to the
Governor General, information connected with government, revenues. o r interests of
the Company. The Governor General in turn was under the direct control of Court
of Directors and kept it fully informed of the affairs concerning the interests of the
Company.
 The Act also provided for the establishment of a Supreme Court of Justice at Constitutional
Developments ( I 757-1858)
Calcutta to give justice to Europeans, their employees and citizens of Calcutta.
Legislative powers were granted to the Governor General and Council to make rules,
ordinances and regulations for the civil government of Fort William and subordinate
factories.
The Regulating Act did not work smoothly in practice. Its defects and weaknesses
were exposed when it was put to working. Supervision of the British government was
ineffective. The Governor General had to face the opposition of his council, who
united against him. He had no power to override them, though in case of an equal
division he had a casting vote. Disunity of the Council prevented it from solving
external and internal problems of a serious nature. They had to often face deadlocks
which impeded smooth working of the administration. The President of Madras arid
Bombay were under the general controlling power of the Governor General and
Council proved inefficient in actual working.

23.4 PITT'S INDIA ACT, 1784

Pitt's India Act was passed in August, 1784. The purpose was to remove defects in
the Regulating Act. Its essential plan was the same. Company's public affairs and its
administration in lndia were to come directly under supreme control of the British
Government. The right of the Company to territorial possessions was however not
touched, so it essentially meant a compromise.
The Act established a Board of Control consisting of six~commissioners,including,
two Cabinet ministers. The Board of Control was to guide and control the work of .
the Court of Directors and the Government of India. They were to control all
matters of civil and military Government of the British territories in India.' A secret
'
committee consisting of three Directors was appointed to take the place of the Court
of Directors in political and military matters.
The Constitution of the Company's government in lndia was revised. The Act
established the principle that the government of lndia be placed under the Governor
General and a Council of three, so that if only one member of the Council supported
him, he could have his way. The Governor General was given a casting vote. The
Act clearly stated that the Presidencies of Madras and Bombay were to be
subordinate to the Presidency of Bengal in all matters of war, diplomatic relations
and revenue.

I The Governor General and council were made subordinate to British Government.
They were forbidden to declare war and enter into any treaty without the sanction of
the directors or the secret committee.
Pitt's lndia Act is important in many aspects. The President and the b o a 4 were
destined to be the future Secretary of State for lndia and his council. It helped in
uniting lndia by giving supreme power to Governor General over the Governors of
Presidencies.
By reducing one member of the Executive Council of the Governor General his
position was strengthened. The Governor General and Governors were given the
authority to override their councils. The possessions of the Company in India came
under the supremacy of the British Parliament.
The Act laid the foundation of a centralised administration-a process which
k reached its climax towards the close of the nineteenth century. Parliament's control
over East lndia Company was tightened, a trend which remained conspicuous till the
Crown directly took over the Government of lndia in 1858.

I The Act had many defects too. It had divided authority and responsibility. The
Governor General had two masters, the Court of Directors and the Board of
Control. Out of this conflict of authority emerged the view of the primacy of the
1 man on the spot. Cornwallis accordingly stretched his authority to the widest

I
I
possible limit. The actual state of affairs were not known to the Home Government.
This gave Governor General an opportunity to act in his discretion even on matters
of importance.
I
Impact of British Rule : The Government of India was to be carried on till 1857 according to the framework
Polity and Society given in the Pitt's lndia Act. Cornwallis, when appointed Governor General, insisted
on having the power to override his council in important matters such as safety,
peace abd interests of the Crown in India. The Act of 1786 gave him the powers he
asked for. The offices of the Governor General and the Commander-in-Chief were to
be united in the same person.
Declaratory Act of 1788 gave full powers and supremacy to the Board of control.
This wa6 a step towards transfer of powers of the Company to the Crown.

Check Your Progress 1

I) Why dtd the Rntish Covcrrin:cnt decttie that the a!fat15 of the 1 a\t ::l(i~d
Company should no .longer remain okt\lde thc~rcontrol)

2) Which weaknesses of the Regulating Act were removed by the Pitt's India Act?
Answer in five lines.

23.5 CHARTER ACT OF 1793

The Charter was to be renewed in 1793. Henry Dundas, President of the Board of
Control, was in favour of renewing the Charter and allowing the Company to retain
its political privileges and responsibilities. Cornwallis also supported this stand. The
Charter of the Company was renewed for 20 years and it was declared that it would
be allowed to continue with the possession of all territories for the next 20 years.
The Governor General's and Governors' powers to overrule their council were
emphasiked and explained. This power had been given specially to Cornwallis in
1786. Governor General's control over the Presidencies was strengthened. He was
allowed /to issue orders and directions to any Government and Preside'ncy of lndia
during his absence from Bengal without previous consultation with his council. He
could exercise all executive power vested in the Central Government.
A regular code of all regulations that could be enacted for the internal Government
of the BFitish territory in Bengal was framed. The Regulation applied to the rights.
persons and property of the Indian people and it bound the Courts to regulate their
decisioni by the rules and regulations contained therein. It also required that, "all
laws relqting to the rights of the person and property should be printed with
translation in Indian languages and prefixed with statements of grounds on which
they were enacted, "so that the people should become familiar with their rights.
privileges and immunities.
The Act of 1793 thus laid the foundation of government by written laws and Constitutional
regulations in British lndia in place of the personal rule of the past rulers. The L)evelopments ( 1757-1858)
interpretation of regulations and written laws was to be done by the Courts. The
concepts of a civil law. enacted by a secular human agency and applied universally,
was an important change.
Indians were not given positions where they could share the influence o r authority.
Indians were excluded "to satisfy the demand of English men for lucrative jobs."

23.6 CHARTER ACT OF 1813

Enquiries into the Company's affairs were ordered before another renewal of the
Charter due in 1813. In 1808, the House of Commons appointed a Committee of
investigations. Its report on judicial and police arrangements was submitted in 1812.
The government decided to allow British subjects access to lndia with their ships.
The Home Government had specifically directed the Government of lndia not to
follow the policy of conquests. But aggressive policies in lndia resulted in acquisition
of territory. Lord Wellesley and Marquis of Hastings followed an imperialistic
policy. The Company's power had spread t o the whole of lndia except Punjab,
Nepal and Sind. Company requested for financial help from the Parliament due to
overspending in wars and setback in trade. There was also a lot of agitation against
continuance of commercial monopoly by the East lndia Company. Independent
merchants demanded ending of the same. They wanted a share in the trade with
India. The teachings of Adam Smith and his school were by then dominating the
politics of Britain. Benthamite Reformists, the Evangelicals a n d the Traditionalists
tried to influence British politics and policies towards British India. Their foremost
interest was to safeguard the stability of the Empire.
The Act of 1813 renewed the Company's Charter for 20 years, but it asserted the
sovereignty of the British Crown over the lndian territories held by the Company,
Company was allowed t o have territorial possessions for another 20 years.
The Company was deprived of its monopoly of trade with India. It was allowed to
continue with its monopoly of trade with China for 20 years. The lndian trade was
thrown open to all British
- merchants.

23.7 CHARTER ACT OF 1833

The Industrial Revolution had made Britain a manufacturer of cotton textiles and
other factory goods. A vast country like lndia could consume a large number of
manufactured goods and provide raw materials as well. Industrialists were keen to
conquer the vast lndian markets. The East India Company served the ends of British
imperialism. Their restrictive policies had led t o the ruin of indigenous industries.
Laissez Faire had become the basic philosophy of the new industrial policy in
Britain. There was a popular desire to free trade from restrictions and monopolies.
When it wastime for the renewal of the Charter in 1833 there was widespread agitation for
abolition of the Company and take over of administration by the Crown. A
Parliamentary enquiry was held.
The political atmosphere in Britain was full of enthusiasm for reforms. The well
known Reform Act was passed in 1832. The country was enjoying the prosperity
achieved with the Industrial Revolution. It could afford to adhere t o the policy of
free trade. Slavery was abolished in the whole of the British empire.
The Act of 1833 was a great landmark in the constitutional history on India.
The monopoly of tea trade with China was abolished. The Company was t o have
only political functions. lndia was t o pay the Company's debts. Its shareholders were
guaranteed a dividend of 10.5 per cent per annum. The union of the trader and the
sovereign was finally dissolved. the lndian possessions of the Company were t o be
held in trust for the British Crown. The President of the Board of-Control became
Impact of British Rule : the minister for lndian affairs. The Directors were to act as expert advisors of the
Polity and Society President of the Board of Control. The Board of Control was invested with authority
to superintend, direct and control the affairs of the Company relating to the
Government or revenues of the lndian territory which vested in the Company in
trust for the English Crown.
Governor General of Bengal became the Governor General of India. The Governor
General in Council was to control, superintend and direct the civil and military
affairs of the Company. Bombay, Bengal, Madras and other regions were subjected
to complete control of the Governor General in Council. Central Government was to
have complete control over raising of revenues and expenditure. Expenses of
Provincial Governments, creation of new offices, and obedience of all members of
the Government of Bombay, Madras were under strict control of the Central
Government.
By the Act of 1833, the Governor General in Council were given the power to
legislate for the whole of the British territories in India. These laws were applicable
to all persons, British or lndian foreigners or others and to the servants of the
Company. They were enforceable by all cou'rts in India.
The Act added one more member to the Executive council of the Governor General.
the Law Member, whose work was fully legislative. He had no vote in the Council
and he was to attend meetings, on invitation. But he practically became a regular
member of the council. Lord Macaulay, the Law member, influenced't he educational
policy of the government for a number of years.
The number of members of the Presidency Councils was reduced to two. Bombay
and Madras were to keep their separate armies under the Commanders-in-Chief.
They were to be under the control of the Central Government.
The Act provided for the codification of laws in India. There were several type of
laws before 1833. There were the English Acts, Presidency Regulations, Hindu Law,
Muslim Law, Customary Law etc. By this Act the Governor General was empowered
to appoint the Law Commission to study, collect and codify various rules and
regulations prevalent in India. The lndian Penal Code and Codes of Civil and
Criminal Law were enacted by the efforts of lndian Law Commission.
Section 87 of the Act declared, "that no native or natural born subject of the crown
resident in lndia should be by reason only of his religion, place of birth, descent,
colour or any of them be disqualified for any place in the company's service." It was
a momentous declaration. Lord Morley later described it as the most important
lndia Act passed by the British Parliament till 1909. This was not of much practical
importhnce, since nothing was done and Indians remained excluded from higher
posts in civil and military service.

The Charter Act of 1833 made no provision to secure the nomination of Indians to
the covenanted services of the company. Yet the clause proclaiming on
discrimination was of great importance for it became the sheet-anchor of political
agitation in lndia towards the end of the century.

Check Your Progress 2

I ) Which important source of profit did the East lndia Company lose in 1833'?
Write in five lines.

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2 ) What were the main clauses of the Charter Act of 1793? Write in ten lines.
 Constitutional
Developments (I757-1858)

23.8 CHARTER ACT OF 1853

Politically conscious Indians made efforts to bring to an'end the reactionary
government of the East lndia Company. Raja Rammohan Roy went to Britain and
represented India's case before the Parliamentary Select Committee. The Bombay
Association and the Madras Native Association sent petitions on similar lines. But
there was strong opposition to it from leaders of different parties, ministers,
president of the Board of Control and Company's Directors. They favoured the
renewal of the Charter.
By the Act of 1853, separation of the executive and the legislative functions was
carried a step further by the provision of additional members of council for the
purpose of legislation.
The Law Member was made a full member of the Executive Council of the
Governor General. The consent of the Governor General was made necessary for all
legislative proposals. In this framework the central,legislature was completed.
Central Legislative Council was to consist of one representative each from the
Provinces. Measures concerning a province were to be considered in the presence of
representatives from that province. The Chief Justice of Supreme Court of Calcutta
was to be the ex-officio member of the Council. Two more civilians might be
nominated by the Governor General, but this authority was never exercised.
The Council in its legislative capacity was to consist of 12 members. These included
-
the Governor General, Commander-in-Chief, four members of his council and six
legislative members. .
All vacancies in lndia were to be filled in by competitive examinations. Lord
Macaulay was appointed the President of the Committee.
The number of Directors was reduced from 24 to 18. Six of them were to be
nominated by the Crown.
The Company was allowed to retain possessions of the Indian territories " i ~trust for
Her Majesty, her heirs and successors until Parliament shall otherwise provide."
The "Legislative Councillors" were neatly distinguished from the "Executive
Councillors" and by doing so, legislation was for the first time treated as a special
function of the government requiring special machinery and special procedure. The
business of the Council was conducted in public. The procedure it adopted for
transaction of business was much the same as in the British Parliament. Questions
were put, papers were demanded and information was asked for and Government
was criticised for its lapses and excesses.
Certain misgivings were raised in the minds of Home authorities lest a representative
system might not pave its way into the fortress of their autocratic machinery. The
authorities in Britain felt when the Council which consisted of British officials only,
showed boldness and inquisitiveness and pried into the field of the Executive. Its
petitions for redress of grievances were presented as defiance of the parental
authority of the Home Government and public rejection of certain bills offended the
authorities in Britain. No Indian element was associated with the Legislative
Councils.
Impact of British Rule : In practice the Legislative Council threatened to alter the whole structure of the
Polity and Society Indian Government. It had developed into "an Anglo-Indian House of Commons."

23.9 GOVERNMENT OF INDIA ACT. 1858

As the Charter Act of 1853 did not give the East lndia Company the right to
govern lndia for another 20 years, it gave an opportunity to the Home Government
to step in and take the place of the East lndia Company in India. This process was
hastened by the happenings of 1857, or the s o called 'Mutiny'.
Whigs and Tories had joined hands to complete without delay the process of
extendihg crown government over India. Lord Palmerston, the British Prime
Ministdr, declared his Government's decision to assume directly the Government of
lndia by the British Crown. John Stuart Mill prepared-a dignified and weighty
petition which was presented by the Company against the Government decision t o
both the Houses of Parliament. But no petition could any longer stem the tide of
mounting criticism against the Company's administration. Lord Stanley. President of
the Board of Control introduced a bill for the 'Better Government' of lndia which
became an Act of Parliament in August 1858.
The Government of lndia passed from the hands of the English East lndia Company
to the crown. The armed forces of the company were transferred t o the crown.
The Board of control and court of Directors were abolished. Their place was taken
by the Secretary of State of lndia and his lndia Council. They were to govern lndia
in the name of her majesty. The Secretary of State was t o sit in Parl~ament.He was
a cabinet minister of England and as such was responsible t o Parliament. Ultimate
power over lndia remained with Parliament.
The Act created a n lndia council of fifteen members. It was t o advise the Secretary
of State who could overrule its decisions. Approval of the Council was essential in
financial matters. Most of the members of the lndia Council were those who had
retired from Indian services.
The Secretary of State was given the power of sending and receiving secret messages
and despatches from the Governor General without the necessity of communicating
them t o the lndia Council. The Secretary of State was t o present t o the House of
C o m q o n s periodically report on the moral and material progress of India.
The Government of India in its dealings with England was guided by the directions
laid down by the Secretary of State in Council. All matters concerning legislation.
land revenue. public works, railways, jobs, new expenditure and policies were rigidly
scrutinised and controlled by the Secretary of State. The Rules and Regulations made
in lndia by the secretary of state were t o be laid on the table of the House of
Commons.
The Governor General became known from now as the Viceroy or Crown's
representative. In matters of policy and its execution the viceroy was increasingly
reduced to a subordinate position in relation to the British Government. The
Govetnrnent of lndia was finally directly controlled from London.

Check Your Progress 3

I ) T o what extent wab the revolt of t857 responbible lor the takeover of the I n d ~ a n
dovernment by the Crown !' Write in five line.\.

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2) What were the power5 of the Secretary ol State and the Viceroy under the
Gnvernrnrnt i > t Indtn Act of 1858 '7
 Constitutional
Developments (1757-1858)

1 23.10 LET US SUM UP

The need for constitutional change arose after the East lndia Company became the
political power in 1757. The British Government was no longer willing t o allow the '
Company's affairs t o continue unsupervised. Pressure from merchants and
manufacturers t o end the monopoly of the Company mounted. Public opinion was
critical of corruption in the Government in Bengal. Free enterprise became a popular
slogan.
The Regulating Act of 1773 accordingly put a check -on the powers of the Company.
Its administration was subjected t o supervision by the British Government. The
setting u p of the Supreme Court at Calcutta was t-he first step towards establishing a
new structure of Government.
Pitt's lndia Act further strengthened the powers of the Government vis-a-vis the
Company. In lndia authority was centralised in the person of the Governor-General
who was answerable to the British Government through the Board ef Control.
The Charter Act of 1813 ended the prized monopoly of the Company over trade
with India. With this a n era begun in 1600 ended. The Company's control over
revenue. administration and appointments was untouched. Its monopoly of the
China trade continued.
The Charter Act of 1833 ended the Company's monopoly of the China trade. The
Act also declared that n o Indian subject would face discrimination o n the grounds of
creed, descent, colour etc.
The Charter'Act of 1853 was a holding measure. The Government of lndia Act of
1858 vested authority in the Secretary of State and the Viceroy. They became the
twin pillars on which the structure of Government rested. The rule of the Crown was
finally established in place of Company's rule.

23.11 ANSWERS TO CHECK YOUR PROGRESS

EXERCISES
Check Your Progress 1
I ) See Section 23.2
2) Read Sections 23.3 and 23.4 before writing your answer.

Check Your Progress 2

1) See Section 23.7
2) See Section 23.5

Check Your Progress 3

I) See Section 23.9
2) See Section 23.9