REGULATING ACT 1775

The Act was passed by the British parliament, sought to control and regulate the affairs of the British East India Company, both in England and India.

l  Why the Act was passed?

1.       The dual system of government in Bengal (Government jointly by the company and the Nawab of Bengal) called for remedial action.

2.       The ruling circles felt that the administrative set-up of the company in England was unsatisfactory. They feared that corrupt retired servants of the company would corrupt public life in England

3.       The company was on the brick of bankruptcy owing to the following factors

(A)  The Court of Proprietors had raised the dividend from 6% to 12% which drained the company’s resources.

(B)  The British Government required the company to pay it 400,000 pounds per annum from 1767 to 1772

(C)  The famine in Bengal and wars in south India left the company’s treasury empty

l  Major provisions

1.       The Act designed its chief as Governor- General of Bengal and a council of four members were appointed. The first Governor General (Warren Hestings) and Councilors (Philip Francis, Clavering, Monson, and Barwell) were named in the Act.

2.       The Government of Bombay and Madras Presidencies were subordinated to the Bengal Government in matters of making treaties or declaring war. Thus began a central Government in India.

3.       Establishment a Supreme Court at Calcutta (William Fort) consisting of a chief justice (Sir Elijah Impey) and three subordinate judges (Chambers, Lemaister and Hyde). The court was given both original and appellate jurisdiction. All the public servants, all British subjects in Bengal, European and Indian, were made amenable to its jurisdiction.

4.       The court of Directors, comprising 24 members, was to be elected for four years, with 1/4^th members retiring every year. Council could be removed by the King on the recommendation of the Court of Directors.

5.       Salaries fixed as Governor General (25000 pounds), member of council (10000 pounds), Chief Justice of Supreme Court (8000 pounds), Other judge (6000 pounds)

6.       The company was required to submit copies of all correspondence received from India to the British Government.

7.       The company’s monopoly over the trade with East Indies was extended for 20 yrs.

8.       The company’s servants were prohibited from accepting bribes or doing private trade.      

l  Importance of the Act

1.       It marked the beginning of British Parliamentary intervention in India Affairs.

2.       The East India Company was recognized as a commercial-cum-political body

3.       The Act opened new channels for Britain’s Imperial ambitions in India.   

l  Defects in the Act

A number of defects in the Act led to many complications, some of the defects were;

1.       The Act was a half measure. It left many points doubtful

2.       A conflict in the Governor General’s council caused administrative deadlock between 1774 and 1776.

3.       The Supreme Court’s jurisdiction was obscure leaving unclear

(I)                The law coming under its purview

(II)             The Court’s jurisdiction and judicial officers of the company.

(III)           The Court’s relations with the Governor General’s council.

4.       The Bengal Government’s control over subordinate presidencies was in practice ineffective.

5.       The Act failed to improve the functioning of the company in England.