Regulating Act, 1773
Indian Polity › Historical Background · Topic 1.1
The Regulating Act, 1773 was the first law passed by the British Parliament to regulate the East India Company's affairs in India. It created the Governor-General of Bengal, a four-member council and a Supreme Court at Calcutta.
6 min read · UPSC Prelims · Polity · Historical Background
At a Glance
- What it is The first law passed by the British Parliament to regulate the East India Company’s affairs in India
- Passed in 1773, under the British government of Lord North
- Main creations Governor-General of Bengal, a council of four, and a Supreme Court at Calcutta
- First Governor-General of Bengal Warren Hastings
- Supreme Court Began on 22 October 1774 at Fort William, Calcutta. First Chief Justice: Sir Elijah Impey
- Corrected by The Act of Settlement, 1781, and then Pitt’s India Act, 1784
- Exam link UPSC Prelims, Polity: Historical Background
Why Was the Regulating Act Passed?
The East India Company began as a trading company. After the Battle of Plassey in 1757 it gained political power in Bengal. In 1765 it obtained the Diwani, the right to collect revenue there. It now ruled like a state but was run like a business.
Company servants made large private fortunes. The Bengal famine of 1770 deepened the crisis, and by 1773 the Company was in financial trouble and needed a loan from the British government. Parliament looked into its affairs through a secret committee. Lord North’s government then brought the Regulating Act to put the Company’s Indian affairs under British law and supervision.
Timeline
- 1757 Battle of Plassey: the Company gains political power in Bengal
- 1765 The Company obtains the Diwani of Bengal
- 1770 Great famine in Bengal
- 1773 The British Parliament passes the Regulating Act
- 1774 The Supreme Court begins work at Calcutta (22 October)
- 1781 The Act of Settlement settles the quarrels between the Court and the Council
- 1784 Pitt’s India Act brings in stronger control by the British Crown
What Did the Regulating Act Provide?
Governor-General and Council
The Governor of Bengal became the Governor-General of Bengal, helped by a council of four. Warren Hastings was the first Governor-General. The Act named the first councillors: John Clavering, George Monson, Richard Barwell and Philip Francis. The council decided by majority. The Governor-General had only a casting vote, used when the council was tied. He had no veto.
Control over Bombay and Madras
The presidencies of Bombay and Madras became subordinate to Bengal, especially in matters of war and peace. This was the first step towards a centralised administration.
A Supreme Court at Calcutta
The Act created a Supreme Court at Calcutta, at Fort William, with a Chief Justice and three other judges. It applied English law, heard civil and criminal cases, and replaced the Mayor’s Court. It began on 22 October 1774 under Sir Elijah Impey. Appeals could go to the Privy Council in Britain.
Rules for the Company and its servants
- Servants of the East India Company were banned from private trade and from accepting gifts or bribes from Indians.
- The term of the Court of Directors was limited to four years.
- The Directors had to report the Company’s revenue, civil and military affairs in India to the British government.
- The Company’s dividend was capped at 6 per cent until a government loan of £1.5 million was repaid.
How Did the Act Work in Practice?
The Governor-General was outvoted. Three councillors, Clavering, Monson and Francis, often voted against Hastings. With no veto, he could not overrule them, so decisions stalled.
The Nand Kumar case, 1775. Maharaja Nand Kumar had accused Hastings of taking bribes. He was then tried for forgery before the Supreme Court under Impey, found guilty and hanged on 5 August 1775. Many saw the case as political, and it remains controversial.
The Patna and Cossijurah cases, 1777-1780. The Supreme Court claimed jurisdiction in disputes that the Company’s provincial authorities were handling. In the Cossijurah case the Council used troops to obstruct the Court’s officers. Both cases showed that the Act had not clearly said how far the Court’s powers reached.
Why Is the Regulating Act Important?
- It was the first step taken by the British government to control and regulate the Company in India.
- It recognised, for the first time, the political and administrative functions of the Company, not only its trade.
- It made the Company answerable to the British Parliament.
- It laid the foundation of a centralised administration in India.
- It is the first stop on the road to the Constitution of India: Pitt’s India Act, 1784, and later laws such as the Charter Act of 1833 built on it.
What Were Its Limitations?
- No veto: The Governor-General could be overruled by his own council.
- Unclear court powers: The powers of the Court and the Council were not clearly separated, so they clashed.
- Weak control: Bombay and Madras were subordinate only in limited matters, and Parliament’s supervision stayed weak.
- Indian interests ignored: The Act did little for the Indian people, whose revenue paid for the system.
What Did the Act of Settlement, 1781 Change?
The quarrels between the Court and the Council forced Parliament to act again. The Act of Settlement of 1781, also called the Amending Act, corrected the main flaws.
| Point | Regulating Act, 1773 | Act of Settlement, 1781 |
|---|---|---|
| Aim | Bring the Company’s Indian affairs under British law and supervision | Settle the quarrels between the Supreme Court and the Council |
| Reach of the Supreme Court | Claimed authority over any person residing in Bengal, Bihar or Orissa | Confined largely to Calcutta and to British subjects and persons employed by the Company |
| Officials’ official acts | Left unclear | Officials exempt from the Court for acts done in their official capacity |
| Revenue matters | Left unclear | Kept outside the Court’s control |
| Appeals from provincial courts | Left unclear | Went to the Governor-General-in-Council, not to the Supreme Court |
Key People and Terms
- Lord North Head of the British government that brought in the Act
- Warren Hastings Governor of Bengal, made the first Governor-General of Bengal
- Sir Elijah Impey First Chief Justice of the Supreme Court at Calcutta, in office from 1774 to 1791
- Philip Francis, John Clavering, George Monson Councillors who often voted against Hastings
- Maharaja Nand Kumar Accused Hastings of bribery; tried for forgery by the Supreme Court and hanged in 1775
- Diwani The right to collect revenue, which the Company obtained in Bengal in 1765
- Presidency A major British administrative unit in India: Bengal, Bombay and Madras
- Casting vote A vote used only to break a tie
- Puisne judge An ordinary judge of a court, other than the Chief Justice
Exam Corner
Points to Remember
- It was the first law of the British Parliament to regulate the Company in India.
- The post created was Governor-General of Bengal, not of India. “Governor-General of India” came later, with the Charter Act of 1833.
- The Governor-General had only a casting vote and no veto.
- The Supreme Court was at Calcutta and began on 22 October 1774, with one Chief Justice and three judges.
- Company servants were banned from private trade and from taking gifts or bribes.
- The Court-Council quarrels led to the Act of Settlement, 1781.
Do Not Confuse With
- Pitt’s India Act, 1784: the next major law. It set up a Board of Control, so the Company and the Crown shared control.
- Charter Act, 1833: made the head of the government the Governor-General of India.
- Act of Settlement, 1781: a correction of the 1773 Act, not a new framework.
GS Relevance
Frequently Asked Questions
What was the Regulating Act, 1773?
The Regulating Act, 1773 was the first law passed by the British Parliament to regulate the East India Company's affairs in India. It created the Governor-General of Bengal, a four-member council and a Supreme Court at Calcutta.
Why was the Regulating Act passed?
It was passed because the East India Company had become a ruler in Bengal but was in financial trouble and its servants were corrupt. The British Parliament wanted to bring the Company's work in India under law and supervision.
Who was the first Governor-General of Bengal?
Warren Hastings was the first Governor-General of Bengal under the Regulating Act, 1773. He was helped by a council of four and had only a casting vote.
What were the main provisions of the Regulating Act, 1773?
The Act created the Governor-General of Bengal and a council of four, made Bombay and Madras subordinate to Bengal, set up a Supreme Court at Calcutta, banned private trade and gifts for Company servants, and limited the Directors' term to four years.
What were the limitations of the Regulating Act, 1773?
The Governor-General had no veto and could be outvoted by his council. The powers of the Supreme Court and the Council were not clearly separated, control over Bombay and Madras was weak, and Parliament's oversight stayed limited.
What is the difference between the Regulating Act, 1773 and Pitt's India Act, 1784?
The Regulating Act, 1773 created the Governor-General of Bengal and the Supreme Court at Calcutta. Pitt's India Act, 1784 added a Board of Control so that the Company and the British Crown shared control over India.
PYQ Practice — Statement Analysis
1 The Regulating Act, 1773 created the post of Governor-General of India.
It created the Governor-General of Bengal. The title Governor-General of India came later, with the Charter Act of 1833.
2 Under the Regulating Act, 1773, the Governor-General could veto the decisions of his council.
He had only a casting vote when the council was tied, and he could be outvoted by the majority.
3 The Regulating Act, 1773 provided for a Supreme Court at Calcutta with a Chief Justice and three other judges.
The Court began work on 22 October 1774, and Sir Elijah Impey was its first Chief Justice.
4 The Regulating Act, 1773 banned servants of the East India Company from private trade and from accepting gifts or bribes from Indians.
This was meant to reduce corruption among Company servants.
5 Pitt's India Act, 1784 was passed before the Regulating Act, 1773.
The Regulating Act, 1773 came first. Pitt's India Act, 1784 followed it.
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