Charter Act of 1833

Factors which led to passing of the act: Shortcomings of one act  introduction of new act.

The demand for the charter largely came from public servants. They realised the defects largely
in the jurisdiction of the Supreme Court. The jurisdiction of the SC was uncertain. The veto
power of the SC relating to legislation, especially for the matters coming within their
jurisdiction; also caused problems to the public servants. Also, the activities of the Supreme
Court in matters affecting the Mufusil areas were a source of conflict and irritation between the
judges of the SC and the governor general. Another factor was the deteriorating economic
condition of EIC. The budget was in deficit. The governor general was asked to reduce the
expenditure of the subordinate presidencies which meant bringing about centralization in
administrative and financial matters. Also an alliance took place between the British commercial
interests and the Evangelicals. They were those who wanted to spread Christianity in India. The
British merchants wanted to invest in India without any curbs on them whereas the Evangelicals
wanted to spread the Christian religion in India. This necessitated the passing of a new charter.
Also the trend of public opinion in England influenced the company’s policy. The question of
freely allowing the British and the Europeans to settle in India and to set up their enterprise in
India was gaining importance. It was also having legal and judicial reactions especially from the
English men who came to India. They insisted in the privilege of retaining English law and
English courts in India, so they also started demanding legal reforms. Back in England, the
liberal economists and utilitarian’s dominated the political scene. The doctrine of laissez faire,
reassertion in fundamental rights like the freedom of press dominated the scene. Statesmen like
Macaulay, John Stuart Mill were at helm of affairs. They demanded political reforms and
exercised considerable influence on the bill. The views of Macaulay were opposed by a large
number of parliamentarians. In spite of the opposition, EIC was granted the charter for another
20 years.

The charter was passed in 1833, came into force in 1834. The major provisions of the charter:
The first set of provisions brought about changes in the constitutional structure of the central
government in India. The governor general of Bengal was to be known as the governor general
of India, the governor general was given larger powers, and he was empowered to make laws and
regulations for all persons and places in British India. These laws automatically became acts of
governor general even though they were not registered in SC. He was also given the power to
control and direct the civil and military affairs of the country. The governor general’s council was
to consist of 4 ordinary members who were to be company’s officials for at least 10 years, the
governor general was the chairman of the council. The fourth member was to be an English
jurist. This jurist or the law member could only sit and vote in the meeting concerning the
making of the laws. He was not given the power to sit and vote in other matters. In executive
matters, he had no voice. Lord Macaulay was appointed as first law member. The commander in
chief of India could be an extraordinary member of the council and his rank was next after the
governor general. The governor general also had the right to appoint the Indian Law Commission
which was to be a body to enquire into the jurisdiction, rights and powers of the court of justice,
police establishments. Its main purpose was to provide a common law. This law was to be
applicable to all classes of inhabitants, due regard was to be given to the customs of the people. It
was also to look into a uniform judicial procedure. The act also centralized the administration of
the country. The presidencies of Bengal, Bombay and Madras were placed under control of
governor general. The disjointed system of three independent presidencies was abolished. A step
towards centralized legislative was taken. Before this 5 types of law existed in India.

1. Acts passed by the Parliament

2. Charters

3. Orders of the governor general called regulations

4. Orders of the Supreme Court

5. Laws of Presidencies

Now the governor general alone could make laws known as acts. The second set of provisions
dealt with changes in the presidency government. The governments of Madras and Bombay were
deprived of their powers of making laws. They were placed under the central government in
matters of legislation. In financial matters, the presidencies of Madras of Bombay were
subordinated to the central government. For all types of recurring expenditures the sanction of
the central government was necessary. For the administration of the north-western provinces, it
was suggested to have a new presidency at Agra; never really happened. The third set of
provisions brought about changes in the home government. The east India Company was allowed
to have its administration and political powers till 30th April 1854. The commercial privilege of
the company to deal with trade of tea with china it was taken off. The company was asked to
wind its business. As a compensation for the loss of their commercial privilege (this was very
significant and shows why the economic and financial condition of India became miserable
under the British) 90 Million Pounds were to be given to the company from the revenue collected
from India. (In the year 1830, when the average salary of an Indian was just about Rs. 1-2/pm, 90
million pounds were to be collected from the revenue of India). All restrictions of Europeans
settlements and enterprise in India were abolished. The system of license was closed. Every
European had the right to come to India. They were free to reside. They acquired unrestricted
rights in land travel and trade in India. The next set of provisions brought about Indianization of
civil services. No native person on the basis of his religion, place of birth, colour, and descent
was to be debarred from holding any office for employment in the company. So the colour bar
was removed. In matters of appointment in the company, the governor general was also given the
power to take steps to look into the abolition of slavery in India. 10 years later, Allen Borough
made slavery illegal in India. The significance of this act was that for the first time an all India
was set up in Calcutta which had the authority to make laws for all territories in India. The
governments of Bombay and Madras were deprived of their legislative powers. The legislative
powers were centralized. They were vested with the governor general. The act also opened the
doors of India for the British who were given the rights to settle in India, purchase land and other
facilities. The British were to live under the control of the laws of company’s central government
in India. The governor general was given the power to make laws for all persons including the
British, Europeans, other foreigners and Indians. These laws had the same effect as any other act
of parliament. The position of the central government in its relation to the three presidencies was
strengthened. So a possible clash/ conflict between the centre and the presidencies could be
avoided. The economy in the company’s administration was secured. Earlier the presidencies
used to spend as much as they liked. There was no check on them but by this act, the
presidencies were bound to take the sanction of the governor general with regard to financial
matters. The powers of the central government and the subordinates were defined and with this
act the governor general became a supreme body not only in theory but also in general practice.