Regulating Act 1773

Why Regulating Act 1773?

Apart from the reasons mentioned in the previous post, there were a few more important factors that led to the Regulating Act of 1773.

1. There were three Presidencies viz. Bombay, Madras and Bengal, under which the territories ^{(modern Maharashtra, Gujarat, Goa, Karnataka, Tamil Nadu, Orissa, West Bengal, Bihar and Uttar Pradesh).} was independently under the control of a Governor General in Council of the respective presidency. This Governor General in Council was appointed by the Committee of the Company. All powers were lodged in the Governor and the Council jointly and the presidencies were independent of each other. Each had its own government, independent from the others.
2. The mismanaged Finances made the company almost insolvent and the company was forced to apply to the British Government for a loan of One Million Pound Sterling.
3. The Prime Minister of England at the time of Regulating Act of 1773 was Lord North. His government decided to undertake a legislation to meet the situation and provide some form of legal government for the Indian possessions of the East India Company. The company was important for the revenues of the British Government because, it was a monopoly trading company and many influential people had invested in its shares at England.
4. To maintain the monopoly, the East India Company paid 4 Lakh Pounds to the British Government every year.
5. The other influential business houses of England were so far not allowed to enter India , but now the company was been unable to meet its commitments.
6. The East India Company had lost its monopoly of selling tea in North America in 1768. This was because the Dutch were able to enter the American Markets.

Regulating Act 1773

The Regulating Act of 1773 was to

1. Address the problem of management of company in India.
2. Address the problem of dual system of governance instituted by Lord Clive
3. To control the company, this was so far a business entity but now a semi-sovereign political entity in India.

• There was nothing in the act which could address the people of India, who were paying revenue to the company but now were dying in starvation in Bengal, Bihar and Orissa.
  • The Regulating Act of 1773 is called the First step of Government Control in India.
  • Since the Government in Britain regulated the company and did not take it over, it was termed "Regulating Act".
  • Regulating Act of 1773 is known to be the first step of the British government to regulate the affairs of the East India Company.

Changes:

1. The Regulating Act made the presidencies of Bombay and Madras as subordinate to the Presidency of Calcutta.
2. The Governor of Bengal was designated the Governor of the Presidency of Fort William and he was to serve as Governor General of all British Territories in India.
3. The Governor of the Presidency of Fort William had to be assisted by an executive council which had 4 members.

First Governor General of India

Now, the Governor General of India and his council of 4 members got a legal status.

• As per the act, Office of the Governor-General of the Presidency of Fort William was created in 1773, and on 20 October 1773, Warren Hastings became the first Governor General of India.

Members of the Council

The members of the council were

1. Lt. General John Clavering
2. George Monson
3. Richard Barwell
4. Philip Francis.

India's First Supreme Court

The same act established India's first Supreme Court, Fort William, Calcutta.

• This Supreme Court consisted a Chief Justice and three other regular judges or Puisne Judges.
• Sir Elijah Imphey was the first Chief Justice.
• The Supreme Court was the supreme judiciary over all British subjects including the provinces of Bengal, Bihar and Orissa.

Impact of this Act:

1. This act unequivocally established the supremacy of the Presidency of Bengal over the others. In matters of foreign policy, the Regulating Act of 1773 made the presidencies of Bombay and Madras, subordinate to the Governor General and his council. Now, no other presidency could give orders for commencing hostilities with the Indian Princes, declare a war or negotiate a treaty.
2. The act forbade the servants of the company to accept presents and bribes, to curb the corruption.
3. It established a supreme court at Fort William, Calcutta and India's modern Constitutional History began.

Position of the Supreme Court Calcutta

There was nothing comprehensible in the act with regard to the relation of the Supreme Court with the Government of Bengal. The Supreme Court subjected the company to the control of British Government.

• Later an amendment in this act was made (The amending act of 1881), in which the actions of the public servants in the company in their official capacity were exempted from the jurisdiction of the Supreme Court.

The Supreme Court was also made to consider and respect the religious and social customs of the Indians. Appeals could be taken from the provincial courts to the Governor-General-in-Council and that was the final court of appeal. The rules and regulations made by the Governor General-in-Council were not to be registered with the Supreme Court.

• So, with this act the British Judges started "delivering" justice to the Indians.
• From 1773 onwards, the executive and judicial administration of the country was placed on a regular, though imperfect, footing by parliamentary act.