The Regulating

Act of 1773

Circumstances prior to Act

• The British Parliament and Company

• It became difficult for the British Parliament to determine its relation with the Company

• An established principle of English constitutional law was that no subject could acquired the territories except for the sovereign

Causes for taking over the company

• Public opinion against the co. gathered momentum in England

• Corruption amongst the servant of co.

• Complication due to dual government

• Lack of proper judicial administration

• Deteriorating financial condition of the co.

• The co applied for the loan of one million pounds in 1772

Appointment of Parliament Committees

• British parliament got an opportunity to tighten its hold over the Co.’s affairs

• House of Common appointed two committees

• Select Committee and Secret committee• With two motive mainly1.To study the financial position2.To uproot the corruption from the

Administration and Judiciary•

As a consequences….

• After the submission of the report two acts were passed by the parliament:

• Provisions of the first Act1.Granted the Co. loan of 14,00,000 pounds at

4% interest2.The Co. was forbidden to declare dividends

exceeding 6%3.It was required to submit its account after

every 6 months to the treasury

Regulating Bill of Lord North

• On 18 May 1773 Lord North introduced the Regulating Bill in the House of common

• It had three main objectives

• Reform the constitution of Co.

• Reform the Co.’s Government in India

• To provide remedy against the illegalities and oppressions committed by the servants of the co. in India

Salient Features of the Regulating Act of 1773

• Election of the Director: The Director of the co. elected for 4 years and 1\4 of them retired every year and retiring Director was not entitled to be elected again

• The effect of this provision was to secure stability and continuity in the policy of Directors

Control over the Correspondence

• In order to assert Parliament's control over the co. the Directors were required to regularly send all their correspondence regarding civil and military affairs with Indian authorities before the Secretary of State

• All the corresponding related to revenue of India was required to place before the treasury of England

Appointment of Governor General and Council

• Act made alteration in the structure of the Government of Co. in India

• Governor General and four councilors were appointed

• The Governor of Bengal was designated as Governor -General of Bengal

Control over the Bombay & Madras

• Both the presidencies placed under the control and superintendence of the Governor General and council

Extent of Gov-General’s Power

• It had given all the powers to govern the Company’s territorial acquisition in India

• To administer the revenue of B.B.O.

• And to supervise and control the general civil and military Government of the presidency

Legislative power

• G. G. and Council had the right to make rules ordinance for the better Govt. at Fort William and subordinate factories

• This power was subjected to certain qualification

• They were required to be just and reasonable

• They will not considered until they were duly registered in the SC

• Registration can be done only after expiration of public notification open publication

Establishment of Supreme Court

• Sec 13 of the Regulating act empower the Crown to establish by charter SC of Judicature at Calcutta

• Constitution, power and Jurisdiction of the Court

Critical Estimate of the Regulating Act

• Though the aims and object of the Act were very good but certain defects came lime light.

• Reason ,

• Either due to inexperience of policy maker or

• Defective drafting

• Conflict between GG and Councilors

• 2 were from the company and 3 selected due to their influence in parliament

• Newly elected were not in favour of GG

• Effected the efficiency of the working of the council