India Legal History-Regulating Act 1773- Provisions

Introduction

After 1764 Buxar Victory, Company established unchallenged rule in Bengal. After many efforts, rule of company was exploitative and corrupt.Warren Hastings introduced reforms in 1772. Still there was lot more to be done. British Crown thought it necessary to introduce further reforms and they passed Regulating Act. Regulating act of 1773 have multiple objectives. 

Below are some of them

Change in Constitution of Company

There was court of directors which regulated the affairs of company. Their term was for one year. One year was too short a time to get grasp on company's affairs. So the term of directors increased from one year to 4 year. Also 1/4th of directors were to retired every year.

Voting pattern was also changed.Rich people were only granted votes (not good). Those who have shares worth 1000 £ was conferred with 1 vote, one with 3000 £ granted 2 votes, one with 6000 £ shares granted with 3 votes, one with 6000 £ granted with 4 votes.

Company was brought under parliament control. Matters related to Money (Revenue) to be produced before Treasury of England. Matters related to Military and administration was to be produced by Company to the secretary of  state.

Government of Company

Calcutta was made center of administration. Madras and Bombay was under control of Calcutta (Sorry Mumbaikars).

In Calcutta, Governor of Bengal upgraded to Governor General of Bengal. Apart from Governor General four other members were appointed to his council. Now this 5 folks together had lot of power. 

This Governor and council had to decide matter democratically. Meaning by voting and Majority decisions will be held. Even governor couldn't overturn the majority decision. Meaning if 3 members voted for, then Governor had no option but to accept it.

Madras and Bombay presidencies have no say in matter of war, peace and treaties unless they get approval from Governor general of Bengal. Meaning Madras and Bombay guys could not declare war on someone, could not enter into peace agreement with someone unless Governor seating in Calcutta approves it. However there were two exception to rule. First, when their was imminent necessity and second when Court of Directors gives order.

Law making authority of Council and Governor

Regulating Act empowered Governor and his council to make rules, regulation and ordinance for maintenance of law and order.

However, these laws has to be consistent with laws in England. These passed laws required to be just and reasonable.

These laws would be in force once they are registered with supreme court which was established in Calcutta. People could file appeal against such rule in King In Council within 60 days if any law, rule, ordinance appear unjust, arbitrary.

 Supreme Court and other aspects

Regulating Act empowered crown to established Supreme court in Calcutta. 

Also, Regulating Act was quite strict about corruption. It expressly prohibited private trading by Governor, Council Member and Supreme court judges. It also provided that Servants and officials should not accept gifts from Princely states or Indian authorities.

Analysis-Good and Bad

We will provide improvements related to supreme court in other article.

Governor and Council were empowered to make rules and regulation. Now rules and regulation according to local needs could be made.

 Increase in term of directors also helped to improve Company's administration. One year was too short.

Certain provisions were made to introduce fair and impartial system.

But, Regulating Act was too vague about matters over which Governor and council could make a law. It was also silent on many jurisdiction of supreme court which led to conflicts between Governor council and supreme court. 

Funny thing, in 1777 Warren Hastings was governor general. This council was to be run by Majority rule. So if 3 people could turn against Governor, governor is doomed. So, Clavering with the support of his group declared himself governor saying that he has majority and Hasting had resigned. The fact was Hasting didn't resigned. So two governor parallely started ruling..!! (LOL) 

Thanks.

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