A. PHILOSOPHY OF CONSTITUTION
CHAPTER 01: Historical Underpinnings
➢ In 1600, the British arrived in India as traders in the form of the
East India Company (EIC).
➢ Under a Charter granted by Queen Elizabeth 1, the company had
exclusive rights to trading in India.
➢ Initially, they only engaged in trading and were not motivated by
political gains
➢ However, this scenario changed after their victory in the Battle of
Buxar in 1764
➢ The EIC, which until then was only engaged in trade, gained
Divani rights (rights over revenue) of Orissa, Bengal, and
Bihar.
➢ This marked the rise of EIC as a territorial force.
➢ The company went on to administer India till 1858 when the
British Crown directly assumed control on India’s affairs in the
wake of “Revolt of 1857” .
➢ The British Government went on to rule India till its independence
on August 15th, 1947
➢ The British Government passed various acts, initially to regulate
East India Company and later for the governance of India.
➢ However, none of these met Indian expectations mainly because
they were brought by foreign power and their ultimate aim was to
fulfil their own interest.
➢ All the constitutional developments prior to independence were
imposed upon Indians and Indian opinion in these developments
was constantly ignored.
➢ The company rule from 1773-1858 was followed by the direct rule
of crown (1858 to 1947).
➢ Various constitutional and admininstrative changes were
introduced by the British through these acts.
➢ Although they were brought with the objective of serving British
Imperial ideology, they eventually became responsible in
introducing various elements of democracy and modern state into
Indian political and administrative system.
➢ The evolution of the Indian Constitution can be traced back to
such acts and policies undertaken during the Company and the
British administration.
➢ The evolution can be studied under two broad phases:
o The Company rule (1773-1858)
o The Crown rule (1858- 1947)
, THE COMPANY RULE (1773-1858)
1. REGULATING ACT, 1772
✓ The Regulating Act of 1773 was enacted by the British Parliament
to regulate the EIC's Indian territories, mainly in Bengal.
✓ This legislative act represented the initial involvement of the
British Government in the company’s territorial administration and
signalled the commencement of gradual takeover process that
culminated in 1858.
BACKGROUND
The Act was passed because of the following reasons:
• Financial Distress:
✓ The East India Company was in dire financial stress.
The company was important to the British empire as
the EIC had trading monopoly in India and in the
east.
✓ The company paid £40000 annually to the
government to maintain its monopoly but it had been
unable to meet its commitments since 1768.
✓ In 1772,the company had asked for a loan of
1million pounds from the British Government.
✓ Thus, the British government decided to take steps
to regulate the affairs of the company.
• Inefficient dual system:
✓ After winning the Diwani rights of Bengal, Robert
Clive introduced Dual System of
administration.
✓ In this system the nawab of Bengal was
responsible for “Niza mat” i.e. Judicial and
Political Functions and the Company had
“Diwani rights“ i.e. Revenue Collection rights.
✓ The company had no responsibilities and enjoyed
power.
✓ Whereas the Nawab was burdened with the
responsibility of administration without the
resources. i.e. responsibility without power.
✓ As a result, farmers and the general population
suffered as their welfare was neglected.
• Poor administration:
✓ There were many allegations of corruption and
nepotism against the company officials.
✓ The misadministration of Bengal was one of the
major reasons for the Great Bengal famine of
1770.
✓ Also, during the famine, the company did not
take any meaningful mitigation efforts to provide
, relief to the people like reduction in taxation etc.
• Defeat against Mysore:
✓ The company forces were defeated by Hyder
Ali in the 1st Anglo- Mysore war (1767 to
1769).
PROVISIONS OF THE ACT
❖ Designation:
✓ The Act changed the designation of the Governor of
Bengal as the Governor General of Bengal.
✓ Warren Hastings was appointed as the first Governor
General of Bengal.
❖ Executive Council :
✓ Constituted a four-member Executive Council to
assist the Governor General of Bengal in his role.
❖ Centralisation:
✓ The Governors of Bombay and Madras were made
subordinates to the Governor General of Bengal.
✓ With this the autonomy of the Governor General of
Bombay and Madras was diminished.
❖ Supreme Court :
✓ A Supreme court in Calcutta was established in
1774 comprising one chief justice and three other
judges.
✓ Its first chief justice was Sir Ellijah Impey.
❖ Restrictions on Private Trade:
✓ The Act barred the officials of the company from
engaging in private commerce or receiving bribes
and gifts from the native population.
❖ Accountability of EIC:
✓ It mandated that the Company’s governing
body, the Court of Directors, disclose all its
official affairs to the British Government,
including revenue, civil, and military matters.
* The then Mughal Emperor Shah Alam II granted the ‘Diwani’ rights of
Bengal, Bihar, and Orissa to the East India Company in 1765.
SIGNIFICANCE OF THE ACT
➢ Regulation of company affairs:
✓ It was the first step by the British parliament to regulate and
control the affairs of the East India Company.
➢ Centralised administration:
✓ It laid the foundation of centralised administration in India by
making the Governors of Bombay and Madras presidencies
subordinate to the Governor-General of Bengal.
➢ Official recognition:
CHAPTER 01: Historical Underpinnings
➢ In 1600, the British arrived in India as traders in the form of the
East India Company (EIC).
➢ Under a Charter granted by Queen Elizabeth 1, the company had
exclusive rights to trading in India.
➢ Initially, they only engaged in trading and were not motivated by
political gains
➢ However, this scenario changed after their victory in the Battle of
Buxar in 1764
➢ The EIC, which until then was only engaged in trade, gained
Divani rights (rights over revenue) of Orissa, Bengal, and
Bihar.
➢ This marked the rise of EIC as a territorial force.
➢ The company went on to administer India till 1858 when the
British Crown directly assumed control on India’s affairs in the
wake of “Revolt of 1857” .
➢ The British Government went on to rule India till its independence
on August 15th, 1947
➢ The British Government passed various acts, initially to regulate
East India Company and later for the governance of India.
➢ However, none of these met Indian expectations mainly because
they were brought by foreign power and their ultimate aim was to
fulfil their own interest.
➢ All the constitutional developments prior to independence were
imposed upon Indians and Indian opinion in these developments
was constantly ignored.
➢ The company rule from 1773-1858 was followed by the direct rule
of crown (1858 to 1947).
➢ Various constitutional and admininstrative changes were
introduced by the British through these acts.
➢ Although they were brought with the objective of serving British
Imperial ideology, they eventually became responsible in
introducing various elements of democracy and modern state into
Indian political and administrative system.
➢ The evolution of the Indian Constitution can be traced back to
such acts and policies undertaken during the Company and the
British administration.
➢ The evolution can be studied under two broad phases:
o The Company rule (1773-1858)
o The Crown rule (1858- 1947)
, THE COMPANY RULE (1773-1858)
1. REGULATING ACT, 1772
✓ The Regulating Act of 1773 was enacted by the British Parliament
to regulate the EIC's Indian territories, mainly in Bengal.
✓ This legislative act represented the initial involvement of the
British Government in the company’s territorial administration and
signalled the commencement of gradual takeover process that
culminated in 1858.
BACKGROUND
The Act was passed because of the following reasons:
• Financial Distress:
✓ The East India Company was in dire financial stress.
The company was important to the British empire as
the EIC had trading monopoly in India and in the
east.
✓ The company paid £40000 annually to the
government to maintain its monopoly but it had been
unable to meet its commitments since 1768.
✓ In 1772,the company had asked for a loan of
1million pounds from the British Government.
✓ Thus, the British government decided to take steps
to regulate the affairs of the company.
• Inefficient dual system:
✓ After winning the Diwani rights of Bengal, Robert
Clive introduced Dual System of
administration.
✓ In this system the nawab of Bengal was
responsible for “Niza mat” i.e. Judicial and
Political Functions and the Company had
“Diwani rights“ i.e. Revenue Collection rights.
✓ The company had no responsibilities and enjoyed
power.
✓ Whereas the Nawab was burdened with the
responsibility of administration without the
resources. i.e. responsibility without power.
✓ As a result, farmers and the general population
suffered as their welfare was neglected.
• Poor administration:
✓ There were many allegations of corruption and
nepotism against the company officials.
✓ The misadministration of Bengal was one of the
major reasons for the Great Bengal famine of
1770.
✓ Also, during the famine, the company did not
take any meaningful mitigation efforts to provide
, relief to the people like reduction in taxation etc.
• Defeat against Mysore:
✓ The company forces were defeated by Hyder
Ali in the 1st Anglo- Mysore war (1767 to
1769).
PROVISIONS OF THE ACT
❖ Designation:
✓ The Act changed the designation of the Governor of
Bengal as the Governor General of Bengal.
✓ Warren Hastings was appointed as the first Governor
General of Bengal.
❖ Executive Council :
✓ Constituted a four-member Executive Council to
assist the Governor General of Bengal in his role.
❖ Centralisation:
✓ The Governors of Bombay and Madras were made
subordinates to the Governor General of Bengal.
✓ With this the autonomy of the Governor General of
Bombay and Madras was diminished.
❖ Supreme Court :
✓ A Supreme court in Calcutta was established in
1774 comprising one chief justice and three other
judges.
✓ Its first chief justice was Sir Ellijah Impey.
❖ Restrictions on Private Trade:
✓ The Act barred the officials of the company from
engaging in private commerce or receiving bribes
and gifts from the native population.
❖ Accountability of EIC:
✓ It mandated that the Company’s governing
body, the Court of Directors, disclose all its
official affairs to the British Government,
including revenue, civil, and military matters.
* The then Mughal Emperor Shah Alam II granted the ‘Diwani’ rights of
Bengal, Bihar, and Orissa to the East India Company in 1765.
SIGNIFICANCE OF THE ACT
➢ Regulation of company affairs:
✓ It was the first step by the British parliament to regulate and
control the affairs of the East India Company.
➢ Centralised administration:
✓ It laid the foundation of centralised administration in India by
making the Governors of Bombay and Madras presidencies
subordinate to the Governor-General of Bengal.
➢ Official recognition:
