Constitutional Development In India: Under East India Company & Under Crown Rule

Introduction

India underwent significant constitutional development under British rule. To manage Indian affairs the British government brought out various changes in administration. It led to the gradual establishment of legislative bodies and administrative structures aimed at governing the country. It began with the Regulating Act of 1773 till the Indian Independence Act of 1947 when India gained independence.

This article will give you an overview of the Constitutional development of India under two heads. i.e. Under the East India Company and the Crown. These developments laid the groundwork for India’s eventual journey towards self-governance and independence.

Constitutional Development under East India Company (1765-1858)

• Indian polity and governance went through various changes from East India Company’s rule to the Crown’s rule. Various Constitutional Development (1765-1858) are as follows:-

• Dual System of Government (1765-1772)

  • Diwani Rights: The East India Company obtained Diwani rights in Bengal, Bihar, and Orissa through revenue agreements following the Battle of Buxar (1764). 
    • The Nawab of Awadh received an annual pension, and the Mughal Emperor Shah Alam II received an annual subsidy.
  • Indian as a Deputy DIwan: The Company appointed two Indians as the deputy diwans: Mohammad Reza Khan for Bengal and Raja Shitab Rai for Bihar.
  • First Intervention in Indian Affairs: In 1767, the British government made its first intervention in Indian affairs. 
    • Ten percent of the loot, or four million pounds a year, was wanted.
  • Company Authority versus Indian Responsibility: Between 1765–72, there was a dual system of government, where the Company had the authority but no responsibility and its Indian representatives had all the responsibility but no authority.
  • It was characterized by rampant corruption and excessive revenue collection.

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• Regulating Act of 1773

  • Objective: With constitutional development, the British Government aimed to control and regulate the East India Company.
  • Company’s Expanded Influence in India: It acknowledged that the Company’s influence in India went beyond trade to include the political and administrative spheres and brought an element of centralised administration.
  • Control Over Indian Affairs: The British cabinet gained control over Indian affairs for the first time as the directors of the Company were required to submit all correspondence regarding revenue affairs and civil and military administration to the government.
  • Administration in Bengal under Governor-General: In Bengal,  administration was governed by a Governor-general and council of four members, functioning based on majority rule. 
    • Warren Hasting and four others were named in the act. The governor general could exercise some powers over Bombay and Madras.
  • Supreme Court in Bengal: Establishment of  Supreme Court in Bengal with debatable jurisdiction along with a  scheme based on checks and balances.

• Amendments Act of 1781

  • Supreme Court Jurisdiction: It had been defined to administer personal law within Calcutta.  
  • Social and religious usages of subjects to be honoured.
  • Immunity to Government Servants: were granted immunity for actions while discharging duties.

• Pitt’s India Act of 1784

  • Subordination of the EIC: With constitutional development, the East India Company became a subordinate department of the State under the Act, which gave the British Government significant authority over it. 
  • The company’s territories in India were termed ‘British possessions’.
  • Board of Control: Introduction of a Board of Control, comprising the chancellor of exchequer, a secretary of state, and four Privy Council members appointed by the Crown to extend government control.
  • Dual System of Control: Establishment of a dual system of control over civil, military, and revenue affairs.
  • Governor-general Council: Formation of a council for the Governor-general, including the commander-in-chief, with presidencies of Bombay and Madras subordinate to the Governor-general.
  • General prohibition on aggressive wars and treaties imposed.

• The Act of 1786

  • Consolidating Power: Cornwallis desired to hold the combined authority of commander-in-chief and Governor-general. The new law granted him the authority and conceded this demand.
  • Authority to Override Council: The Act granted Cornwallis the authority to override the council’s decision if he took responsibility, later extended to all governors general.

• The Charter Act of 1793

  • Extension to EIC: The Act renewed the Company’s commercial privileges for the next 20 years.
  • Financial Obligations: The company, after meeting expenses, was to pay 5 lakh pounds annually to the British government from Indian revenues.
  • Royal Approval: It mandated a royal approval for the appointment of key officials – governor general, governors, and commander-in-chief. 
  • Financial Burden Indian Revenues: Home Government members paid from Indian revenues; this practice continued until 1919.
  • Travel Restrictions: Senior officials were barred from leaving India without permission; departure was treated as a resignation.
  • Company was empowered to grant trading licenses, leading to opium shipments to China.
  • Separation of revenue administration from judiciary functions, resulting in the disappearance of Maal Adalats.

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• The Charter Act of 1813

• • Background: Because of Napoleon’s continental system, which closed the European ports to Britain, and the laissez-faire attitude in England, business interests were pushing for an end to the Company’s monopoly over trade in India. 
    • These complaints were addressed by the 1813 Act:
  • Ended the Trade Monopoly: The Company’s monopoly over trade in India ended, but the Company retained the trade with China and the trade in tea. 
  • Shareholders received a 10.5% dividend on Indian revenue.
  • Extension to EIC: Company retains possession of territories and revenue for 20 more years without compromising Crown sovereignty.
  • Educational Grants: For educational initiatives, One lakh rupees allocated annually for the revival, promotion, and encouragement of literature, learning, and science among Indian natives.
  •  Constitutional Definition for British Territories in India: Regulations by Councils of Madras, Bombay, and Calcutta required to be laid before the British Parliament enhancing accountability. 
    • As a result, the British territories in India were given an explicit constitutional definition for the first time.
  • A distinction between commercial transactions and territorial revenues was introduced. 
  • The powers of the Board of Control were expanded.
  • Christian Missionaries: They were permitted to come to India and preach their religion.

• The Charter Act of 1833

• • Extension to EIC: A 20-year lease to the Company was further extended, but the Company lost its monopoly over trade with China and in tea.
  • Removal of Restrictions: There were no longer any limitations on European immigration or the purchase of real estate in India. 
  • Consequently, the path was cleared for the complete colonization of India by Europeans.
  • Expansion of Authority Governor General: Governor General’s power extended to superintend, control, and direct all civil and military affairs of the Company.
  • Law members were added to the governor general’s council for professional advice on law-making.
  • Centralized Control: Bengal, Madras, Bombay, and other territories under complete control of the Governor-general. 
    • The Madras and Bombay governments were severely stripped of their legislative authority, leaving them only able to recommend projects to the governor-general.
  • Financial Control: The Governor-general, who would also have total control over expenditures, was to raise all revenues.
  • Abolition of Slavery: The administration urged to take steps to ameliorate the conditions of slaves, leading to the abolition of slavery in 1843.
  • Legal Reform: Indian laws were to be codified and consolidated, and Indian citizens were not to be denied employment under the Company based on religion, colour, birth, or descent.

• The Charter Act of 1853

• • Unless Parliament specified otherwise, the Company retained possession of territories.
  • The strength of the Court of Directors was reduced to 18 members.
  • The company’s patronage over services dissolved, opening services to competitive examination.
  • The law member was elevated to a full member of the governor general’s executive council.
  • Progress in separating executive and legislative functions, with the addition of six members for legislative purposes.
  • Local representation was introduced in the Indian legislature, forming the Indian Legislative Council.
  • Legislative acts required the governor general’s assent, with the power to veto any legislative council bill.

Constitutional Development Under Crown Rule (1858 to 1947)

• The Act for Better Government of India 1858

  • India was to be governed in the name of the Crown through a secretary of state and a council of 15 members. 
  • The Secretary of State had the final decision-making power, and the council was advisory in nature.
  • The final decision was vested in the secretary of state, while the council was advisory in nature. 
  • Thus, the dual system introduced by Pitt’s India Act came to an end.
  • The Governor-general became the viceroy, increasing the prestige, if not authority.

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• Indian Councils Act 1861

• • It established the principle that non-official representatives should serve in legislative bodies. 
  • Laws were to be made after careful consideration and could only be amended through the same process. 
  • Lord Canning introduces a Portfolio System. And laid the foundations for cabinet government in India.
  • It laid the foundation for legislative devolution as legislative powers were provided to the Bombay and Madras Governments. 
  • Also, provision was made for similar legislative councils in other provinces.

• Indian Councils Act 1892

  • Congress views council reform as the “root of all other reforms”. So, it demanded Legislative Council expansion.
  • The number of non-official members increased in Imperial and Provincial legislative councils. 
  • Indian Legislative Council, or Governor General’s Council, was enlarged.
  • The term ‘election’ was avoided, but an indirect election element has been accepted. The selection of some non-official members includes an indirect election aspect.
  • Legislator’s empowerment can be seen as the members were entitled to express views on financial statements. 
  • Questions were allowed within limits to the executive after six days’ notice on matters of public interest.

• Indian Councils Act 1909 (Morley-Minto Reforms)

  • It attempted for the first time to bring a representative and popular element to governance.
  • The Imperial Legislative Council has increased in strength. 
  • Satyendra Prasad Sinha becomes the first Indian in the Governor General’s Executive Council.
  • Provincial Executive Council membership increased.
  • Legislative powers of both central and provincial councils increased.
  • Separate Electorates for Muslims were introduced, leading to new challenges as Muslims were given representation beyond population strength. 
  • Income qualification was lower for Muslim voters compared to Hindus.
  • A system of highly indirect election was introduced by making representation remote.

• Government of India Act 1919 (Montague-Chelmsford Reforms)[UPSC 2012]

• • Declaration of Responsible Government: In August 1917, the British government, for the first time, declared that its objective was to gradually introduce responsible government in India, but as an integral part of the British Empire.
  • No Self-Determination: The Act made it clear that India would only gradually develop self-governing institutions and that the timing and format of each step toward constitutional advancement would be decided by the British Parliament, not the Indian people’s right to self-determination.
  • Bicameral Legislature: The Indian Legislative Council was replaced by a bicameral system comprising a Council of State (Upper House) and a Legislative Assembly (Lower House).
  • Direct Election: It was introduced through franchise restriction, which was based on property, tax, or education qualifications.
  • Communal Representation: It was extended as a separate electorate for Sikhs, Christians, Anglo-Indians, and Muslims.
  • Provincial Legislature: It consists of a single house (legislative council). 
    • Dyarchy in Provinces was introduced as a substantial step towards the transfer of power to the Indian people.
    • Provincial and central budgets were separated, provincial legislatures were authorized to make their budgets.
    • Some power devolved to provinces with subject demarcation, but unitary and centralized structure persists.
  • High Commissioner for India: Appointed for six years in London, responsible for Indian trade in Europe.
  • Secretary of State’s Pay by British Exchequer, correcting the injustice of the Charter Act of 1793.

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• Government of India Act 1935

• Federal  government
  • The All-India Federation was to be established. 
    • This federation would include Governors’ Provinces, Chief Commissioners’ Provinces, and Indian states willing to accede. 
    • The process involved princely states signing an ‘instrument of accession’ specifying the extent of authority surrendered to the federal government.
  • Bicameral Legislature: Federal Structure in the act introduced a bicameral legislature consisting of the Council of States and the Federal Legislative Assembly. 
    • The Council of States was designed to be a permanent body.
    • In cases of deadlock, joint sittings were allowed.
  • Three Subject Lists: Provided: Federal Legislative List, Provincial Legislative List, and Concurrent Legislative List.
  • Residual Legislative Powers: The governor general retained discretion over residuary legislative powers, having the authority to veto bills passed by the federal legislature.
• Provincial Government
• • Provincial Autonomy: It was granted as the act abolished dyarchy in the provinces. 
  • Full Responsible Government: The Reserved and Transferred Subjects were eliminated, establishing a fully responsible government with certain safeguards.
  • Source of Authority: Provinces gained power directly from the British Crown, along with independent financial powers and resources. 
    • They were allowed to borrow money on their security.
  • Provincial legislatures expanded, with six provinces adopting bicameral legislatures and the remaining five retaining unicameral legislatures.
  • Communal Electorate Expanded: The principles of ‘communal electorates’ and ‘weightage’ were extended to depressed classes, women, and labour.
  • Franchise was expanded, granting voting rights to approximately 10% of the total population.
  • Federal Court: The act established a Federal Court in 1937 with original and appellate powers to interpret and settle inter-state disputes. 
    • However, the Privy Council in London was set to dominate this court.
  • The India Council of the Secretary of State was abolished.
  • Despite this, the All-India Federation never materialized due to opposition from various Indian parties. 
  • While provincial autonomy was introduced in 1937, the Central government continued to operate under the 1919 Act with minor amendments. 
  • The operative part of the Government of India Act 1935 remained in force until August 15, 1947.

• Indian Independence Act, 1947 

  • Royal Assent and Implementation: The British Parliament passed the Indian Independence Act on July 5, 1947 and received royal assent on July 18, 1947. 
    • It was implemented on August 15, 1947. 
    • It was based on the Mountbatten Plan.
  • Features:
    • Two Nations: It provided for the creation of two independent dominions, India and Pakistan, effective from August 15, 1947.
    • Governor-general: Each dominion had a Governor-general responsible for implementing the Act.
  • Constituent Assemblies: The act provided constituent Assemblies of the new dominions exercised legislative powers, leading to the dissolution of the existing Central Legislative Assembly and the Council of States.
  • Interim Governance: Till the adoption of a new constitution by each dominion, the governments operated under the Government of India Act, 1935.
  • Pakistan became independent on August 14, 1947. India gained freedom on August 15, 1947.
  • M.A. Jinnah became the first Governor General of Pakistan.
  • Lord Mountbatten continued as the Governor General of India, upon India’s request.

Conclusion

• Constitutional development in India under British rule was characterized by a gradual process of granting limited self-governing institutions while maintaining ultimate control in the hands of the British Parliament and the Governor-General. 
• The British maintained significant authority over Indian affairs, limiting the extent of self-determination for the Indian people despite various reforms. 
• This period witnessed Several legislative acts and reforms, but the ultimate aim of Indian independence was not realized until 1947 when India finally gained independence from British rule.

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