Historical Background
Historical Background
1612: Battle of Swally(near Surat): small (4-5)naval battle between EIC and Portugese. {During this
period the navy of England i.e. Britain, Spain, Dutch, france, was strong. They use to trade with other countries.} The
battle was won by EIC (we are studing about EIC bcoz EIC won the battle and finally was successful in ruling the
India. )
After the war the EIC came to be preference by the Mughal’s Emperor. (At that reign the Akbar’s son
Jahangir was ruling. The emperor who built Taj Mahal was not the emperor yet.)
1612: Thomas Roe(A diplomat of britain) was sent to Jahangir to arrange a commercial treaty for
exclusive rights in Surat. Recently the war of Swally was won by the EIC which impressed the
Jahangir and he took the rights from Portuguese traders and granted the exlusive rights to EIC.
This was the start of the EIC Dominance in Ind subcon.
Charter of 1669: Authority to rule over definite area.: The island and port of Bomaby were entrusted
to the company at an annual rental of Sterling Pounds 10. Simultaneously, the company was given
the power to make necessary laws and issue ordinances for the good government of Bombay and its
residence. Thus for the first time in 1669 the company acquired the authority to rule over a definite
territory and its people.
From a mere trading it became a ruler.
As there was a cut-throat competition among the Englands for trade and constant war was carried
among them which would threat their goods. So they wanted to keep a watch guards for their
factories.
1670: a charter was passed with i)a right to autonomous teritorial acquisition. (their monarch thought to
give them some powers to carry out trade peacefully as he was impressed bcoz this traders was very rich and was
contributing in their economy). ii) to make war and peace, iii)exercise civil and criminal
jurisdiction(Britain has monarch, they have law so they exercise it in Britain jurisdiction but the traders in other
country was not under Britain jurisdiction so they asked for the jurisdiction of EIC.)
Since this EIC which was a trading company, now slowly they acquired government type of powers
Charter Act 1677: The company was given the rights to issues its own coins.
Charter act 1683: The Charter empowered the company itself to declare war and enter into treaties
subject to the provision that the company itself could not assume sovereign powers over any
territory. Whatever territories were acquired by the company or came under its control, were all for
British Crown with the company acting as its representatives.
1690: Third trading post in Calcutta.
The power and privileges of the company were enlarged by each subsequent charter.
By the year 1700, the company had established its factories(trading centres) and chief settlements at
Bombay, Madras and Calcutta.
1707: Taking advantage of the weakening central authority, disintegration of the Mughal Empire
and disturbed conditions all over the country after Aurangzeb’s death, the company gradually
emerged as the dominant power.
Charter 1726: Empowered the Governor-in-General of the three presidencies of Bombay, Madras
and Calcutta to make bye-laws, rules and ordinances in the conformity with the English laws and
subject to approval by the Court od Directors. (i.e. More legislative power. i.e. rights to make their
own laws)
Englisj laws were expressly introduced and Mayor’s Court established in the three Presidencies by
the 1726 Charter. (first time Uniform judicial system was established. the rights to war and peace was
converted to judicial system)
This judicial system can be said as the most rudimentary judicial system of our modern judicial
system
(Now both the position allied by Britishers was vacant and now french could either accend
or could accend among his alliance.)
• Muzzafar Jung was made Subhedar of Deccan and rewarded Dupleix by appointed
him Governor of Mughal territories below river Krishna.(This made to estalish the
inhouse political control of French.)
• Some district of Circar ceded to French(they wanted coastal to establish trade to
French)
• French regent Bussy in Hydrabad.
• 1751 Chanda Sahib was made the Nawab of Carnetic.(All this succes of French,
britishers were angry)
• Muhammad Ali aided by British, Chanda Sahib and French beseiged(surrounded) the
Fortress
(Here come the ‘jackpot’ of British, Rober Clive, he was a mere clerk in EIC of British.
There were many EIC of differen countries like EIC of Prance, EIC British, EIC Dutch. Some were
Private company other were Govt. Company. EIC British was Private while EIC France was Govt.
means both have different work culture. As govt is not more efficient as compare to private not the
higher officer listen to their lower position but this was not the case in EIC British. Robert Clive
was mere a Clerk but still his plan was listen by his senior position Gen of Bengal Saundars and
even gave the full support to execute the plan and the next point was the part of plan)
• Robert Clive advised to Saundars(Govt. Of Bengal) attach Arcot(Capital of Carnetic)
• In 1751 Robert Clive and his 210 men captured Arcot.
• Chanda Sahib dispatched 4000 soldiers but Clive kept the seige for 53 days.
• British captured Trichinopoly and French surrendered in June 1752, Chanda Sahib
was killed by king of Tanjore.
• Mohammad Ali was made the Nawab of Carnatic.
• Directore of French EIC recalled Dupleix.
• 1754 Godehue was appointed as the Gen of French EIC in India, in Jan 1755 he
proposed a provisional peace treaty signed in Pondicherry by two Companies
Coonclusion:
• Second round of conflict also proved inconclusive.
• French dominated till Dupleix was recalled.
• Northern Circar region ceded French by Muzzafar Jung.(means still indirect french
control)
• On land English Generalship was Superior after that.
• Gohedue started the decline of French power in India.
1757: Battle of plassey: 23rd June 1757 (Indeed the date is accepted from the date when EIC raj started on
Indian Subcon. Initially Mughal emperor’s were ruling the subcon later 1757-1857 EiC had their poltical dominance
simultanous existing with mughal emperor, later 1857 singularly British cown ruled)
Battle of Plassey was a battle between EIC General Robert Clive and Nawab of Bengal Siraj-Ud-
Daulah.
It was the most important battle from future of Indian subcontinent. This war decided who is going
to govern on Indian subcontinent.
(They wanted to remove the foreign competition and therefore they had to faught battle with the
french.)
(We can come across the thinking of two european power in choosing the place to start their
political dominance.
French chosed Souther cost while British chosed Bengal. Bengal was giving maximum trade as
compared to southern coast. All the eastern countries trade was taking place from Bengal, it was
hotspot of revenue genration which in turn give strong economic backup to british as compared to
their contemporary rulers. Strong economic backup also provide them to modernise their military,
trade and transport including industralisation and that is why they rose to such a dominance. Tribute
to Robert clive’s vision)
1765: Shah Alam II entrusted the treaty of Allahabad which meant the
Treaty of Allahabad:
• Based on the terms of the agreement, Shahalam granted the EIC Diwani rights, or the rights
to collect taxes on behalf of the Emperor from the eastern province of Bengal-Bihar-Orrisa.
This rights allowed the EIC to collect revenue directly from the people of Bengal, Bihar and
Orissa.
• The company acquired full powers of land revenue collection and administration of civil
justice while the responsibility of administration, maintainance of law and order and
criminal justice remained with the Nawab.
Consequence of diwani;
• From last 164 years british used to take Salt, sugar, opium, indigo etc from India but give
gold to India. i.e. Money was imported in India and raw was exported .
• After Diwani, they collect taxes, means generating revenue. Some part of it was given to
nawab and the raw material was purchased from this revenue. And the raw material was
exported.
• This is the beginnng of India’s wealth transferring to Europe. (This was the biggest mistake
of battle of bauxar).
• This battle led to the dyarchy from 1765-1772
After this two war, EIC become very powerful politically as well as financially. This started its
career as a
territorial power.
Now the EIC was very powerful, as it was generating revenue from India.
After 175 years later, monarch of britain realised the corruption of Eic in Indian subcon as the
traders were became very rich.
The huge riches brought by the Company officials earned them jealousy and charges of corruption
from the British political class. So when the Company‘s finances were strained due to Wellesley‘s
wars the parliament thought it to be pertinent to pass the regulation Act of 1773.
The dyarchy whic prevailed during 1765-1772 proved disasterous and led to the appointment of an
enquiry committee recommended the need for regulating the activists of the company. The result
was the Regulating act 1773.
{Till we reach to making of our Indian Constitution there are some landmarks which guides how we reach to our
constitution.}
Various Acts,
1773: British parliament bring Regulaing act of 1773.
1784 ....., 1813 ....., 1853 ...., Charter act. [This charters were proposed to increase the dominance of
Eic by various ways but we read to these acts bcoz there are some acts influenced by these acts.]
1858: Sepoy mutiny (This made realised the crown rule in England that to rule Indian Sub is not
possible by EIC and they pass a rule to replace EIC with their direct rule till 1947). The EIC was
liquidated in 1857 but it was finally liquidated in 1874.
1861 .... , 1892 ..., Council Act.
After 1992 they realised to bring Indian in governing
1909 ....., 1919 ...., 1935(GoI Act Indian Consitution is based 60% on it)
1947 final independent Act
Regulating Act, 1773 aka The East India Act, 1772.(10th June 1773)
Q. How Regulating Acts was introduced?
• The British were slowly being influenced by Adam Smith‘s free trade, and resented the
monopolistic control of the Company in trade with India.
• The huge riches brought by the Company officials earned them jealousy and charges of
corruption from the British political class.
• The territorial acquisitions of the East India Company produced a startling effect in England.
The public in General clamored for an immediate Parliamentary intervention.
• Two parliamentary Committees were appointed to enquire into the affairs of East India
Company.
◦ The servants of the Company were concentrating on their private trade. The trade of the
Company was being neglected.
◦ The Company has almost forgotten about trade and was progressively thinking in terms
of conquering more and more land. This needed large armies. Hence more expenditure.
This greed for land very often brought the Company in armed conflict with native
powers. This meant a heavy loss to the Company.
◦ The employees of the Company were given low salaries but they were allowed to carry
on private trade. The result was that the employees concentrated on their private trade
and became rich. The guiding principle for the employees of the Company was to make
money.
◦ The effect of this anarchical tendency was that people of India suffered the entire
suffering. The famine of 1770further aggravated the situation and the people started
groaning aloud.
• So when the Company‘s finances were strained due to Wellesley‘s wars the parliament
thought it to be pertinent to pass the regulation Act of 1773.
Q. Provisions/Features?
Provision for the employees in India
• the Governor-General(the highest position of East India Company representing in India):
◦ The Governor of Bengal was made the ‘Governor-General of Bengal’. The first such
Governor-General was Lord Warren Hastings.
◦ The entire civil and military administration of Bengal was given to the Governor-
General.
◦ Provision was made for an executive council of four members to assist and help the
Governor-General. The four executive councilors mentioned in the Act were Philip
Francis, Clavering, Monson and Barwell.
◦ Their term of office was five years but they could be removed from office earlier by the
British Monarch, if the Court of Directors recommended such an action.
◦ The Governor-General could not take a decision on any matter independently. He had to
act on the advice of the Councilors. Decisions were taken in the Council by majority
vote. In case of a tie the GovernorGeneral was given a casting vote. But he could not
overrule his Council.
◦ The Governor-General-in-Council could make rules and regulations and issue
ordinances for the good government of the Company‘s territories. These rules,
regulations and advice were to be registered with the Supreme Court of India, which was
created by the Act. Without registration these rules and regulations had no effect or
meaning.
• Subordinate Presidencies:
◦ The Presidencies of Madras and Bombay were made subordinate to Bengal, unlike
earlier, when the three presidencies were independent of one another
◦ The Governors-in-Council of Bombay and Madras had to follow the instructions of the
Governor- General-in-Council. The Governor-General could direct control and
superintend the two Presidencies. These Presidencies could neither declare war nor
conclude peace with any power without the sanction of the Governor-General-in-
Council.
• Steps to control Bribe:
◦ The employees of the Company were forbidden to accept any bribes or gifts from the
‘natives’.
◦ It prohibited the servants(The Governor-General, the members of the Executive Council
the Judges, Collectors, and Inspectors, their agents or servants) of the Company from
engaging in any private trade of any description.
◦ If it was a serious matter they could be sent back to England, as a matter of punishment.
• Establishment of supreme court(This court can be called the rudimentary system of modern
courts; this act lays the foundation to modern legal systems):
◦ A Supreme Court was established at Calcutta (1774) by the Regulating Act, .
◦ It comprised of one chief justice and three other judges.
◦ The Supreme Court was given jurisdiction over all the British subjects living in Bengal,
Bihar and Orissa.
◦ The Supreme Court was empowered to try ecclesiastical, admiralty, civil and criminal
cases. The case was decided on the basis of judgment of the Jury.
◦ The Supreme Court had original as well as appellate jurisdiction. The Supreme Court
was to be a Court of Record.
◦ Any contempt or disrespect shown to its orders would be a punishable offence.
Provision for home authorities:
• The Regulating Act did a good job by making the Court of Directors a permanent body.
◦ Before the passage of the Regulating Act the Directors of the Company were elected for
a short term of one year. Directors of the Company were elected by the Court of
Proprietors. This system was extremely defective.
◦ The Directors were busy throughout their term of one year either obliging their
supporters of the previous election or preparing others for the coming election.
• The Act required the Governor-General of Bengal and the Governors of the Presidencies of
Bombay and Madras to pay due obedience to the orders of the Directors in London.
◦ It was the first measure by which a European government assumed the responsibility for
governing territories acquired by it outside Europe and inhabited by civilized people.
• The Act also attempted to eradicate corruption and bribery by making several provisions.
• Attempt to strength the control:
◦ It strengthened the control of the British Government over the Company by requiring the
Court of Directors (governing body of the Company) to report on its revenue, civil, and
military affairs in India.
The declaratory act of 1781 aka Amending Act of 1781 aka the Act of Settlement.
Q. Why it was introduced?
• In a bid to rectify the defects of the Regulating Act of 1773, the British Parliament passed
the Amending Act of 1781.
Reasons:
There were many causes responsible for the passage of this Act.
1) There were many glaring defects in the regulating Act, 1773 which were necessary
to be reformed by the British Parliament if the administration of the company was to run on some
sound footing in India.
2) In 1783, the different American colonies became quite independent of the British
control and naturally the English were worried that such an example would be followed by India.
So it was thought proper to exercise more control over the affairs of the East India Company in
India.
Q. Provision/Features:
• The political and commercial activities of the company were now separated.
• It allowed the Court of Directors to manage the commercial affairs, but created a new body
called Board of Control to manage the political affairs. Thus, it established a system of
double government.
• It empowered the Board of Control of six members to supervise, direct and control all
operations of the civil and military government or revenues of the British possessions in
India.
• Bombay and Madras were now definitely subordinated to the Governor General and his
Council.
• Act provided for the establishment of a special Court for the better trial of the Company‘s
officials in England for offences committed by them in India. Warren Hastings fought many
undesired wars, so in order to the prevent the succeeding Governor-General from copying
the examples of Warren Hastings the Act laid down that henceforth the Governor-General
should take the permission of the Board of Control before making peace or declaring any
war. Thus the Pitts India Act laid emphasis on the policy of non-intervention.
Q. Significance:
Thus, the act was significant for two reasons.
• First, the Company’s territories in India were for the first time called the ‘British
possessions in India’.
• second, the British Government was given the supreme control over Company’s
affairs and its administration in India.
• Pitt's India Act is quite an important legislation because by it the real power in India
passed from the Directors to the British Parliament.
• The Board of Directors now remained as a mere shadow of its former existence. In
actual practice the Board of Control, appointed by the British Parliament came to
supersede both the court of proprietors and the Board of Directors. It could inspect the
files of the Company and issue instructions accordingly which the Directors of the
Company had to carry out.
• the Pitts India Act proved quite permanent and underwent little material changes till
1858. In that year some changes were no doubt made as a result of the great Rising of
1857 but still its fundamental principles remained almost the same.
Act of 1786
• In 1786, Lord Cornwallis was appointed as the Governor-General of Bengal. He placed two
demands to accept that post, viz.,
1. He should be given power to override the decision of his council in special cases.
2. He would also be the Commander-in-Chief.
Accordingly, the Act of 1786 was enacted to make both the provisions
Q. Freatures/Provision:
• It extended the overriding power given to Lord Cornwallis over his council, to all future
Governor-Generals and Governors of Presidencies. It was laid down that when the
Governor-General went to a presidency, he superseded the Governor.
• Governor General was given the power to appoint vice-president of his executive council
from the members of the council. The vice-president was to act in place of Governor
General when the latter was absent from Bengal
• The Commander-in-Chief was not to be a member of the council of the Governor-General
unless he was specially appointed to be a member by the court of Directors.
• It gave the Governor-General more powers and control over the governments of the
subordinate Presidencies of Bombay and Madras.
• It extended the trade monopoly of the Company in India for another period of twenty years.
• It laid down that the members of the Board of Control and their staff were, henceforth, to be
paid out of the Indian revenues.
• The admiral jurisdiction of Calcutta Supreme Court was extended to the high seas.
Q. Main Provisions:
• In its essential provisions, the powers of the Board of Control to superintend, control and
direct the affairs of India were clearly defined and greatly enlarged. The British Crown‘s
sovereignty over the Company‘s territorial acquisitions was explicitly proclaimed.
• The Company‘s powers of patronage were reduced. The Court of Directors was to make
appointments to the offices of Governor- General, Commander-in-chief, Governor, etc.
Subject to the approval of the king of England and their orders to this effect had to be
counter signed by the Board of Control.
• The most important provision was concerned with the trade. The Company‘s tea trade with
China was reserved for it, but trade monopoly with India was completely abolished and the
private erchants of England were permitted to develop free trading contacts with India. This
lasted till 1833 when the charter of abolished the trade of the company..
• The British merchants and missionaries were given full liberty to settle in India after
securing licenses for the purpose from the Directors of the Company. The company was
required to appoint one Bishop at Calcutta with three Archdeacons to work under him.
• It provided for the spread of western education among the inhabitants of the British
territories in India. [In that year india’s gdp was 41 lac of which they used 1 lac in education
i.e. 2%]
• It authorised the Local Governments in India to impose taxes on persons. They could also
punish the persons for not paying taxes.
Significance:
• They clearly proclaimed the Sovereignty of the Crown over the Company‘s territories in
India. The Powers of the Board of Control being considerably enlarged.
• The abolition of the Company‘s trade monopoly was not of less significance. British private
merchants were allowed to go settle in India and thus to introduce a severe competition in
trade which was, prior to this entirely in the Company‘s hands.
• The Christian Missionaries of England were allowed to come freely and settle in this
country. This had wholesome effect, in a sense that a large number of missionary schools
and colleges were opened for the education of the Indians. The Provisions for setting apart
one lakh of rupees for the development of education in India was a welcome development. It
laid the foundation of the English system of education in India which threw open
progressive English literature on liberty and equality for the Indian mind to inculcate.
Q. Provision:
• It separated, for the first time, the legislative and executive functions of the Governor-
General’s council. (Separation of Power.)
• Provided for addition of six new members called legislative councilors to the council known
as the Indian(Central) Legislative Council(This was the birth of Indian Parliament)
• Of the six new legislative members of the GovernorGeneral’s council, four members were
appointed by the local (provincial)[This were genrally the britishers only living in India
provinces]
• governments of Madras, Bombay, Bengal and Agra
• The number of Court of Directors was reduced from 24 to 18 and 6 of these were to be
nominated by the Crown.
• It introduced an open competition system of selection and recruitment of civil servants. The
covenanted civil service was, thus, thrown open to the Indians also. Accordingly, the
Macaulay Committee (the Committee on the Indian Civil Service) was appointed in 1854.
• It extended the Company’s rule and allowed it to retain the possession of Indian territories
on trust for the British Crown. But, it did not specify any particular period.(unlike the
previous Charters. This was a clear indication that the Company’s rule could be terminated
at any time the Parliament liked.)
• The law member was made a full member of the Governor-General‘s executive council. He
was to assist the Governor-General in the enactment of legislation. The Governor-General‘s
consent was necessary for all legislative proposals. The Chief justice of the Supreme Court
of Calcutta was to be an unofficial member of this council.
Civil Services:
• Warren Hashting laid the foundation of CS in India.
• Corwallis aka Father of ICS. During those period there were two types of posts
Covenented[in todays period IAS, IPS, IFS] and noncevenented.[Other central jobs]
• In GoI Act 1919 Covenented was converted to All India Services. And uncovenented into
Central Services.
• Indian Subcon Railways, Civil Services, Legal and army are the legacy of their.