The Charter Act of 1833 & 1855 | History Optional for UPSC (Notes) PDF Download

Introduction to Charter Act 1833

• The Government of India Act 1833, also known as the Saint Helena Act 1833 or The Charter Act of 1833, was passed by the Parliament of the United Kingdom. It granted the British East India Company another 20 years of operation but with significant changes.
• The Company was no longer allowed to engage in commercial business and had to focus solely on governance. The charter renewal came with the condition that the Company abandon all trade, including with India and China, and allow Europeans to settle freely in India.
• This act opened judicial positions to Indians for the first time and established a law commission to codify laws.

Background:

• The Charter Act of 1813, which renewed the East India Company’s charter for 20 years, expired in 1833.
• During the 20 years between the Charter Acts of 1813 and 1833, England underwent significant changes due to the Industrial Revolution.
• The Industrial Revolution led to the production of cheap goods, which were exported overseas, broadening people’s perspectives.
• A new class of intelligentsia emerged to advocate for the rights of laborers.
• In 1830, the Whigs (later the Liberal Party) came to power, promoting liberal principles and the Rights of Man.
• The political climate in Britain was charged with reform enthusiasm following the Reform Act of 1832.
• Amidst these reformist and liberal ideas, Parliament was tasked with reviewing the Company’s Charter in 1833.
• There was a growing agitation in Britain for abolishing the Company and transferring Indian administration directly to the government.
• Despite this agitation, a parliamentary inquiry recommended continuing the Company’s rule in India but under a different framework.
• The Act of 1833, influenced by figures like Macaulay and James Mill, marked a significant point in India’s constitutional history.
• Macaulay, as Secretary to the Board of Control, and James Mill, a follower of Bentham at the India House, had a strong impact on the Charter Act of 1833.

Provisions of the Charter Act of 1833

India as a British Colony: The Charter Act of 1813 legitimized British colonization in India, allowing the East India Company to govern its territorial possessions “in trust for his majesty” for the benefit of the Government of India.

• The act transformed the Company from a commercial entity into an administrative body, stripping it of its monopoly in China and the tea trade.
• The Company was henceforth tasked solely with political functions, holding its Indian possessions in trust for the British Crown.
• The act redefined the Governor-General of Bengal as the Governor-General of India, marking the beginning of direct British rule.
• Lord William Bentinck became the first Governor-General of British India, overseeing civil, military, and revenue matters across the country.
• The Governor-General in council was empowered to legislate for all British territories in India, ensuring uniform laws applicable to all individuals, British or Indian.
• Central control over revenue and expenditure was established, centralizing financial and administrative powers in the Governor-General in Council.
• The number of members in the Governor-General's council was fixed at four, with specific limitations on the fourth member's role, who could only participate in legislative functions.

Lord Macaulay's Appointment as Law Member:

• Lord Macaulay was the fourth person to be appointed as the law member of the Council.

Change in Administrative Title:

• The President of the Board of Control became the Minister for Indian Affairs.
• The Board was given the power to supervise all administrative affairs in India.

Immigration and Land Acquisition:

• Restrictions on European immigration into India and on the acquisition of land and property by Europeans were completely removed.
• This act lifted the legal barrier on the colonization of India by Europeans.

Split in Bengal Presidency:

• The Charter Act of 1833 proposed to split the Presidency of Bengal into two presidencies:Presidency of Fort William and Presidency of Agra.
• However, this provision was never implemented and was later suspended.

Enhanced Power of Governor-General of India:

• The Governor-General was given exclusive legislative powers for all of British India.
• Governor-General-in-Council could repeal, amend, or alter any laws or regulations for all persons, places, and things in British territory in India.
• Court of Directors could veto any laws made by the Governor-General-in-Council.

Codifying the Laws:

• The Charter Act of 1833 aimed to codify Indian laws.
• All laws made in India were to be laid before the British Parliament and known as Acts.
• The act authorized the Governor-General to appoint Indian Law Commissioners to study and codify various rules and regulations in India.

First Indian Law Commission:

• Established by the Charter Act of 1833, with Lord Macaulay as Chairman.
• Tasked with inquiring into the jurisdiction, powers, and rules of courts, police establishments, judicial procedures, and laws.
• The Commission's report was to be submitted to the Governor-General-in-Council and placed before the British Parliament.

Implementation of Codes:

• The Law Commission completed its codification task by 1837, but full implementation occurred after the 1857 revolt.
• The Code of Civil Procedure was introduced in 1859, the Indian Penal Code in 1860, and the Criminal Procedure Code in 1862.
• These codes aimed to establish universal principles of jurisprudence.

Indians in Government Service:

• Section 87 of the Charter Act of 1833 declared that merit was the basis for employment in Government Services, disregarding religion, birthplace, or race.
• This was the first act to allow natives of India to participate in the administration.
• While Company services were opened to natives, there was no provision for their nomination to the covenanted services.
• The act attempted to introduce a system of open competitions for the selection of civil servants.

Competition for Civil Servants:

• The provision for open competition was opposed by the Court of Directors, who maintained the privilege of appointing Company officials.
• Competition was limited to candidates nominated by the directors, which did not improve the situation.
• Finally, the Charter Act of 1853 established open competition for civil servants, with recruitment through an examination open to all natural born subjects of Her Majesty.

Mitigation of Slavery:

• The act instructed the Governor General-in-Council to take steps to reduce the state of slavery still present in India.
• While slavery had been abolished in Britain in 1820, colonial administrators in India continued to find its existence in various forms.
• Finally, with Act V of 1843, slavery was abolished in India.
• The Governor General-in-Council was also tasked with considering laws related to marriage, family heads' rights and authorities when drafting any new laws.

More Bishops:

• As the number of British residents in India increased, the 1833 charter act regulated the establishment of Christian institutions in India, increasing the number of bishops to three.

Significance of the Act of 1833

• The Act of 1833 introduced significant and far-reaching changes in India's constitution.
• The Company was relieved of its monopoly over tea trade in India and trade with China, completing the work initiated by the Charter Act of 1813.
• Having lost its commercial privileges, the Company could now focus on administration.
• The provision for law codification was crucial.
• Prior to 1833, laws were so flawed that it was often impossible to determine what the law was.
• There were various types of enforceable laws in India, making it difficult to decide which law applied in specific cases.
• The Act's provisions regarding the abolition of slavery and the opening of services in India to all, regardless of religion, birthplace, descent, or color, were commendable.

Drain of Wealth:

• The Indian government took over the Company's debts, agreeing to pay shareholders a 10.5% dividend on their capital from Indian revenues for the next 40 years.
• This increased India's burden and became a significant aspect of the drain of wealth.

The Charter Act of 1853

Background

• In India, there were increasing calls for the abolition of Company rule, but the British government was not yet convinced. As the time approached for the renewal of the Company's Charter, there was a growing demand to end the Double Government of the Company in England. This demand arose because:
  (i) The Court of Directors was seen as no longer useful.
  (ii) The presence of both the Court of Directors and the Board of Control was causing unnecessary delays and extra costs.
• Concerns were raised about the adequacy of the legislative framework established by the Charter Act of 1833.
• There were calls to separate the roles of Governor-General of India and Governor of Bengal to avoid bias in favor of Bengal.
• Significant territorial and political changes had occurred since the Charter Act of 1833, including:
  (i) Incorporation of Sind and Punjab into Company territories in 1843 and 1849, respectively.
  (ii) Annexation of several Indian states under Lord Dalhousie’s policies.
  (iii) The necessity to constitutionally provide for the newly acquired territories.
• There was also a demand for decentralizing powers and involving Indians in the management of their own affairs, which had some support in England. Under these circumstances, the British Parliament was called upon to renew the Company's Charter in 1853.

Provisions of the Charter Act of 1853

• The Charter of 1833 was renewed in 1853, but not for another twenty years.
• The Company was allowed to keep its Indian possessions "in trust for Her Majesty, her heirs and successors until Parliament shall otherwise provide," leaving the possibility of future takeover open.
• The Act stipulated that the British Government would set the salaries of the Board of Control members, its Secretary, and other officers, but these salaries would be paid by the Company.
• The number of Court of Directors members was reduced from 24 to 18, with 6 members nominated by the Crown.
• The Act separated the executive and legislative functions of the Governor-General's council by adding new members for legislative purposes.
  • The Law Member became a full member of the Governor-General's Executive Council.
  • The Legislative Council was expanded by adding six members:
    (i) The Chief Justice and a puisne judge of the Calcutta Supreme Court.
    (ii) Four representatives from Bengal, Madras, Bombay, and the North Western Provinces, all civil servants with at least ten years of service.
  • The Governor-General could appoint two additional civil servants to the Council, though this power was rarely used.
• The Council's procedures were modeled after the British Parliament, allowing for oral discussions and the use of Select Committees for legislative business.
• The Company's control over appointments was reduced by introducing competitive recruitment for the Indian Civil Service.
  (i) The Court of Directors lost its patronage power as services were opened to competitive examinations without discrimination.
  (ii) A committee led by Macaulay was established in 1854 to implement this scheme.
• The Court of Directors could create new Presidencies or alter existing ones to incorporate newly acquired territories.
  (i) This power was used to establish a separate Lieutenant-Governorship for Punjab in 1859.
  (ii) The Act also allowed the Crown to appoint a Law Commission in England to review reports and drafts from the Indian Law Commission, which had been disbanded, and recommend legislative measures.

Significance on the Act

• Loss of Control: The British East India Company, already stripped of its commercial privileges, struggled to maintain control over policies in India.

• Act of 1853: The Act represented a compromise between two opposing views:

  • Supporters of Company Rule: Some wanted the Company to continue governing India in trust for the Crown.
  • Advocates of Crown Control: Others preferred direct Crown control, which was reflected in the Act.

• Changes in Governance: The Act reduced the number of Directors from 24 to 18, with 6 being Crown nominees. This change aimed to give the Crown more influence in decision-making.

• Legislative Council's Power: The newly formed Legislative Council began to challenge the Executive, questioning its actions and demanding transparency, even with confidential documents.

• Independence of Legislation: The Council asserted its right to legislate independently, which concerned Sir Charles Wood, the Act's author. He clarified that the Council was not meant to be the start of a constitutional Parliament in India.

• Significance of the Act: Despite its flaws, the Act of 1853 was a significant constitutional measure of the 19th century, primarily due to the functioning of the Legislative Council.

• Exclusion of Indians: The Act continued to exclude Indians from the legislative process, which was a major drawback.