HISTORICAL BACKGROUND OF INDIAN CONSTITUTION

Complete Study Notes • The Company Rule (1773–1858) & The Crown Rule (1858–1947)

1600- Grant charter

1600–1608 1765 1858 1947

EIC came to India with Obtained Diwani Rights Sepoy Mutiny led to direct Indian Independence Act
Charter from Queen Elizabeth (Revenue & Civil Justice); responsibility of British passed; freedom granted on
I. started career as Territorial Crown for Governance. Aug 15, 1947.
Power.

1. THE COMPANY RULE (1773 – 1858)

1. Regulating Act of 1773 FOUNDATION OF CENTRAL ADM

• First time regulated and controlled the affairs of East India Company (EIC).
• Recognised political and administrative functions of the Company; laid foundation of central administration in India.
• Governor of Bengal designated as Governor-General of Bengal (4-member executive council). First GG of Bengal
was Warren Hastings.
• Established Supreme Court at Calcutta (1774) comprising 1 Chief Justice and 3 other judges.
• Governors of Bombay and Madras Presidencies were made subordinate to the Governor-General of Bengal.
Misuse of Dastak
• Prohibited Company servants from engaging in private trade or accepting bribes/gifts from native population.
• Strengthened control by requiring Court of Directors (COD) to report on revenue, civil, and military affairs in India.

2. Amending Act of 1781 (Act of Settlement) RECTIFIED 1773 ACT

• Passed to rectify defects of the Regulating Act of 1773.
• Exempted Governor-General, Executive Council, and Company servants from Supreme Court jurisdiction for actions
taken in official capacity.
• Excluded revenue matters and revenue collection rules from Supreme Court jurisdiction.
• Mandated that personal law of defendants be applied (Hindus tried by Hindu Law, Muslims by Mohammedan Law).
• Appeals from Provincial Courts to go to Governor-General-in-Council, not to the Supreme Court.
• Empowered Governor-General-in-Council to frame regulations for Provincial Courts and Councils.

3. Pitt's India Act of 1784 DOUBLE GOVERNMENT

• Distinguished between Commercial and Political functions of the Company.
• Court of Directors (COD) managed Commercial affairs; new body Board of Control (BOC) managed Political affairs
(Established System of Double Government).
• Empowered Board of Control to supervise and direct all operations of civil, military government, or revenues of
British possessions.
• Significant for 2 reasons: First time Company's territories were called "British Possessions in India", and British
Govt was given supreme control over EIC administration.
The Board of Control (BOC) was created under Pitt's India Act of 1784 to establish direct British

Cabinet supervision over the East India Company. It replaced the purely commercial Court of

• Executive Council members reduced from 4 to 3 members.

Directors (COD) with government ministers who held supreme veto power over political, civil,

military, and revenue affairs. Unlike the 1773 Act, which only required reporting, the BOC possessed

full legal authority to approve, modify, or reject orders sent to India. This system neatly separated

commercial trade activities for corporate shareholders from imperial sovereignty, which remained

accountable to Parliament. Additionally, it introduced a 3-member Secret Committee to issue rapid,

4. Act of 1786 LORD CORNWALLIS

confidential military commands during times of war.

• Appointed Lord Cornwallis as Governor-General of Bengal in 1786 with two essential demands:
• Given power to override decisions of his Council in special cases.
• Appointed as the Commander-in-Chief.

The Regulating Act of 1773 was enacted because the East India Company faced imminent financial collapse following the 1770 Bengal

Famine and costly regional wars, forcing them to request a £1 million loan from the British Parliament. Meanwhile, Company officials

were accumulating vast personal wealth through rampant corruption, extortion, and illegal private trade. The lawless "Dual

Government" system in Bengal had severely crippled local administration, and there was no central authority among the Bombay,

Madras, and Bengal presidencies. To prevent total bankruptcy and curb corruption, Parliament intervened to establish direct state

supervision over the Company's administration in India.

The EIC requested a public bailout to save a private business, and because a private company was waging wars and ruling foreign

territories, Parliament was forced to pass laws to bring the Company under state supervision.
 The Charter Act of 1793 extended the East India Company's trade monopoly in India for 20 years to maintain steady trade revenues for Great Britain while

protecting imperial finances. Entering the French Revolutionary Wars in 1793, Britain required a reliable supply of vital wartime materials like saltpetre. Strong

political lobbying by the EIC Court of Directors convinced Parliament that managing Indian territories required a unified corporate force rather than uncoordinated

private traders. Lastly, British industrial manufacturing was not yet ready to flood the Indian market, delaying free trade until 1813

5. Charter Act of 1793 MONOPOLY EXTENDED

• Extended overriding power given to Lord Cornwallis to all future Governors-General and Governors of Presidencies.
• Gave GG more power and control over subordinate governments of Bombay and Madras Presidencies.
• Extended trade monopoly of Company in India for another 20 years.
• Commander-in-Chief not to be a member of GG’s Council unless specifically appointed.
• Members and staff of Board of Control (BOC) to be paid out of Indian Revenues.
The Charter Act of 1813 ended the East India Company's commercial trade monopoly in India, opening Indian markets to private British merchants driven

by Industrial Revolution demands and Napoleon's European blockade. However, to protect the Company from sudden financial collapse and preserve

6. Charter Act of 1813 TRADE MONOPOLY ENDED

essential state revenues, Parliament maintained its exclusive monopoly over the lucrative tea trade and trade with China

• Abolished commercial trade monopoly of EIC in India; however, continued monopoly over trade in Tea and trade
with China.
• Asserted sovereignty of the British Crown over Company's territories in India.
• Allowed Christian missionaries to come to India for moral/religious enlightenment.
• Provided for the spread of Western Education among inhabitants of British territories.
• Authorised Local Governments in India to impose taxes on persons and punish persons for non-payment.

7. Charter Act of 1833 FINAL STEP TO CENTRALISATION

• Made Governor-General of Bengal as Governor-General of India with all civil and military powers. Lord William
Bentinck was first GG of India.
• Deprived Governors of Bombay and Madras of legislative powers; GG of India given exclusive legislative powers for
entire British India.
• Ended EIC activities as a commercial body; became a purely administrative body.
• Attempted open competition for selection of Civil Servants, but provision negated due to opposition from Court of
Directors (COD).
• Added 4th Law Member to GG's Council (Lord Macaulay) as a temporary non-voting member for framing laws/
regulations.

8. Charter Act of 1853 MINI-PARLIAMENT

• Separated for the first time legislative and executive functions of Governor-General's Council. Added 6 new
legislative members called Legislative Councillors.
• Established 12-member Indian (Central) Legislative Council functioning as a "Mini-Parliament" following British
Parliamentary procedures.
Composition: GG + Commander-in-Chief + 4 Executive Members + 6 Legislative Members = 12 Members

• Introduced open competition for Civil Services (Indians allowed); Macaulay Committee on Indian Civil Service
appointed in 1854.
• Extended Company's rule on trust for British Crown without specifying any time period.
• First time introduced Local Representation in Indian Legislative Council: 4 out of 6 legislative members appointed
by local governments of Madras, Bombay, Bengal, and Agra.

2. THE CROWN RULE (1858 – 1947)

9. Government of India Act of 1858 ACT FOR GOOD GOVERNMENT

• Enacted following 1857 Revolt. Abolished EIC and transferred powers of government, territories, and revenues to
British [Link] 1858 Act: When the British Crown abolished the East India Company and took direct control over India in 1858, Queen Victoria was the sitting head of state

• India to be governed in name of Her Majesty. Changed designation of GG of India to Viceroy of India (Direct
representative of British Crown). First Viceroy: Lord Canning.
• Ended System of Double Government by abolishing Board of Control (BOC) and Court of Directors (COD).
• Created new office: Secretary of State (SOS) for India, member of British Cabinet, directly responsible to British
Parliament. The first person appointed to the post of Secretary of State for India in 1858 was Lord Stanley

• Established 15-member advisory body (Council of India) to assist SOS; SOS made Chairman of Council.
• Constituted SOS-in-Council as a body corporate capable of suing and being sued in India and England.
 The Indian Councils Act of 1861 initiated decentralization by restoring legislative powers to the Bombay and Madras Presidencies to fix the dangerous flaws of hy per-centralization exposed by the

1857 Revolt. A central council in Calcutta was too detached from distant regional realities and overwhelmed by local administrative burdens, while provinces varied greatly in land sy stems, customs,

and laws. By restoring local legislative authority, the British streamlined governance, allowed the central government to focus on all-India policies like defense and finance, and accommodated local

Indian elites into provincial councils to gauge public sentiment and prevent future uprisings.

10. Indian Councils Act of 1861 REPRESENTATIVE INSTITUTIONS

• Viceroy nominated Indians as non-official members of expanded Legislative Council. In 1862, Lord Canning
nominated 3 Indians: Raja of Benares, Maharaja of Patiala, and Sir Dinkar Rao.
• Initiated process of decentralisation by restoring legislative powers to Bombay and Madras Presidencies.
• Established new Legislative Councils for Bengal (1862), NWFP (1866), and Punjab (1897).
• Gave statutory recognition to Portfolio System (introduced by Lord Canning in 1859).
• Empowered Viceroy to issue Ordinances during emergency without concurrence of Legislative Council (Life: 6
months).

11. Indian Councils Act of 1892 INDIRECT ELECTION

• Increased number of additional (non-official) members in Central and Provincial Legislative Councils, retaining
official majority.
• Increased functions of legislative councils: power of discussing budget and addressing questions to executive
(Budget system introduced in British India in 1860). No Voting Right: Members could only discuss the budget; they had no power to vote on budget items or move

amendments.

• Provided for nomination of non-official members:

• Central Legislative Council: By Viceroy on recommendation of Provincial Legislative Councils & Bengal Chamber of
Commerce.
• Provincial Legislative Council: By Governor on recommendation of District Boards, Municipalities, Universities, Trade
Associations, Zamindars.
• Made a limited and indirect provision for use of election (word "election" was not used in the act).

12. Indian Councils Act of 1909 (Morley-Minto Reforms) COMMUNAL ELECTORATE

• Morley: Secretary of State | Minto: Viceroy.
• Increased size of Central (16 to 60) and Provincial Legislative Councils. Retained official majority in Central Council,
allowed non-official majority in Provincial Councils.
• Enlarged deliberative functions: members allowed to ask supplementary questions, move resolutions on budget, etc.
• First time associated Indians with Executive Councils: Satyendra Prasad Sinha became first Indian to join Viceroy's
Executive Council (appointed as Law Member).
• Introduced system of Communal Representation for Muslims (Separate Electorate). Lord Minto known as "Father
of Communal Electorate".
• Provided separate representation for Presidency Corporations, Chambers of Commerce, Universities, and
Zamindars.

13. Government of India Act of 1919 (Montagu-Chelmsford Reforms) DYARCHY IN PROVINCES

• On Aug 20, 1917, British Govt declared objective: gradual introduction of Responsible Government in India. Came
into force in 1921. (Montagu: SOS, Chelmsford: Viceroy).
• Relaxed central control by demarcating Central and Provincial subjects via Devolution Rules. Structure remained
centralized and unitary.
• Introduced Dyarchy (rule of two) in Provinces by dividing Provincial subjects into:
• Transferred Subjects: Administered by Governor with aid of Ministers responsible to Legislative Council.
• Reserved Subjects: Administered by Governor & Executive Council without being responsible to Legislative Council
(Experiment largely unsuccessful).
• Introduced for first time Bicameralism (Council of State & Legislative Assembly) and Direct Elections in country.
• Required 3 of 6 members of Viceroy's Executive Council (other than Commander-in-Chief) to be Indian.
• Extended Communal Representation to Sikhs, Indian Christians, Anglo-Indians, and Europeans.
• Granted Franchise to limited people based on property, tax, or education qualifications.
• Created office of High Commissioner for India in London.
• Provided for establishment of Public Service Commission (Central Public Service Commission set up in 1926).
• Separated Provincial budgets from Central budget and authorized Provincial legislatures to enact their budgets.
• Provided for appointment of Statutory Commission after 10 years to report on working. Proposed Chamber of
Princes (Narendra Mandal) inaugurated in 1921 (120 members).
Simon Commission (1927) & Communal Award (1932) INTERIM EVENTS
• Simon Commission (Nov 1927): 7-member statutory commission under Sir John Simon. All members British;
boycotted by all parties. Submitted report in 1930. Led to 3 Round Table Conferences & White Paper on
Constitutional Reforms submitted to Joint Select Committee.
• Communal Award (Aug 1932): British PM Ramsay MacDonald announced scheme extending separate electorates to
Depressed Classes (SC). Gandhiji undertook fast unto death in Yerawada Jail (Poona). Resolved by Poona Pact
between Congress & Dr. B.R. Ambedkar (retained Hindu Joint Electorate with reserved seats for Depressed Classes).

15. Government of India Act of 1935 321 SECTIONS, 10 SCHEDULES

• Provided for establishment of an All-India Federation consisting of Provinces and Princely States as units
(Federation never came into being as Princely States did not join).
• Divided powers into 3 lists:
• Federal List: 59 items | Provincial List: 54 items | Concurrent List: 36 items. Residuary powers given to Viceroy.
• Abolished Dyarchy in Provinces and introduced Provincial Autonomy (In effect 1937, discontinued 1939).
• Provided for Dyarchy at Centre (Did not come into operation).
• Introduced Bicameralism in 6 out of 11 Provinces (Bengal, Bihar, Assam, Bombay, UP, Madras).
• Extended Communal Representation to Depressed Classes, Women, and Labour.
• Abolished Council of India (est. 1858); SOS provided with a team of advisors.
• Extended franchise to ~14% of total population.
• Provided for establishment of Reserve Bank of India (RBI), Federal Court (set up 1937), Federal PSC, Provincial
PSC, and Joint PSC.
• Separated Burma from India. Provided safeguards for minorities, Federal Railway Authority, and Auditor-General of
India.

16. Indian Independence Act of 1947 PARTITION & INDEPENDENCE

• On Feb 20, 1947, British PM Clement Attlee declared British rule would end by June 30, 1948. On June 3, 1947, Lord
Mountbatten put forth Partition Plan (Mountbatten Plan).
• Ended British rule; created two independent Dominions: India and Pakistan (with right to secede from British
Commonwealth) on Aug 15, 1947.
• Abolished office of Viceroy; provided Governor-General for each dominion appointed by British King on advice of
dominion cabinet.
• Empowered Constituent Assemblies of both dominions to frame and adopt any constitution and repeal any act of
British Parliament.
• Abolished office of SOS for India; transferred functions to Secretary of State for Commonwealth Affairs.
• Lapsed British Paramountcy over Indian Princely States and treaty relations with tribal areas.
• Granted freedom to Princely States to join India, join Pakistan, or remain independent.
• Governance of dominions carried out under GOI Act 1935 until new constitutions were framed.
• Designated GG of India and provincial governors as constitutional (nominal) heads of states.

Comprehensive Historical Background Notes • Derived from Handwritten Study Materials

HISTORICAL TRANSITION OF EXECUTIVE POWER
Comparative Study of the Interim Government (1946) & The First Cabinet of Independent India (1947)

TABLE 1.1: INTERIM GOVERNMENT (1946)

SL.
MEMBERS PORTFOLIOS HELD
NO.

Vice-President of the Council; External Affairs & Commonwealth

1. Jawaharlal Nehru
Relations

2. Sardar Vallabhbhai Patel Home, Information & Broadcasting

3. Dr. Rajendra Prasad Food & Agriculture

4. Dr. John Mathai Industries & Supplies

5. Jagjivan Ram Labour

6. Sardar Baldev Singh Defence

7. C.H. Bhabha Works, Mines & Power

8. Liaquat Ali Khan Finance

9. Abdur Rab Nishtar Posts & Air

10. Asaf Ali Railways & Transport

11. C. Rajagopalachari Education & Arts

12. I.I. Chundrigar Commerce

13. Ghaznafar Ali Khan Health

14. Jogendra Nath Mandal Law

Constitutional Note: The members of the Interim Government were members of the Viceroy’s Executive Council. The Viceroy continued
to be the head of the Council. However, Jawaharlal Nehru was designated as the Vice-President of the Council.

TABLE 1.2: FIRST CABINET OF INDEPENDENT INDIA (1947)

SL.
MEMBERS PORTFOLIOS HELD
NO.

Prime Minister; External Affairs & Commonwealth Relations; Scientific

1. Jawaharlal Nehru
Research

2. Sardar Vallabhbhai Patel Home, Information & Broadcasting; States

3. Dr. Rajendra Prasad Food & Agriculture

4. Maulana Abul Kalam Azad Education

5. Dr. John Mathai Railways & Transport

6. R.K. Shanmugham Chetty Finance

7. Dr. B.R. Ambedkar Law

8. Jagjivan Ram Labour

9. Sardar Baldev Singh Defence

SL.
MEMBERS PORTFOLIOS HELD
NO.

10. Raj Kumari Amrit Kaur Health

11. C.H. Bhabha Commerce

12. Rafi Ahmed Kidwai Communication

13. Dr. Shyama Prasad Mukherjee Industries & Supplies

14. V.N. Gadgil Works, Mines & Power

Indian Polity Reference Resource • Interim Government (1946) & First Cabinet (1947)