1

A Project

On

Charter Act of 1833

[Submitted as partial requirement for B.A. L.L.B. (Hons.) 5 year integrated course]

Submitted on: 16 January 2021

Submitted by: - Submitted To:-

Tanu Didel Dr. Yamini Atreya

Roll No. 90 Faculty

Semester I-B

University Five Year Law College,

University of Rajasthan

Jaipur
 2

Declaration

I, Tanu Didel, hereby declare that this project is based on original research work carried out by
me under the guidance and supervision of Dr. Yamini Atreya. The interpretations put forth are
based on my reading and understanding of original texts. The books, articles and websites which
have been relied upon by me have been duly acknowledged at the respective places in the text.

For the present project which I am submitting the university, no degree or diploma has been
conferred on me before either in this or any other university.

Date: January, 16, 2021 Tanu Didel

90

I Semester (B)
 3

Acknowledgement

I have written this project, under the supervision of Dr. Yamini Atreya, Faculty, University Five
Year Law College, University of Rajasthan, Jaipur. Her valuable suggestions herein have not
only helped me immensely in making this work, but also in developing analytical approach in
this work. I am extremely grateful to Director Dr. Sanjula Thanvi and staff of the college for
their constant support and cooperation.

Tanu Didel
 4

Certificate

Dr. Yamini Atreya Date: 16/ 01/2021

Faculty

University Five Year Law College

This is to certify the Tanu Didel of semester I, section A, of University Five Year Law College,
University of Rajasthan has carried out the project under my guidance and supervision. The
student has completed research work in the stipulated time, and according to the norms
prescribed.

Supervisor
 5

Abstract

The Charter Act of 1833 or the Government of India Act 1833 was passed by the parliament of
United Kingdom; it renewed the East India Company’s privileges for another twenty years. It
ceased the company’s economic activities and it became merely a political body, completing the
work established by the Charter Act of 1813. This Charter Act laid the foundation of codified
laws in India and also for the first time brought centralization of power as it redesignated the
Governor-general of Bengal as Governor-general of India. Thus, this study focuses on the
reforms brought by this act, its significance. It also studies the First Law Commission established
by the same Charter Act, the contributions of the commissions. It also deals with the
circumstances that led to its passage by the English parliament. It also studies the impact of the
provisions of the act on the Indian Legal system.
 6

Table of Contents

1. Declaration………………………………………………………………….2
2. Acknowledgment…………………………………………………………...3
3. Certificate…………………………………………………………………..4
4. Abstract……………………………………………………………………..5
5. Introduction…………………………………………………………………7
6. Provisions.……………………………………………………………………9
7. Effect on legal system.………………………………………………………12
8. First Law Commission………………………………………………………15
9. Conclusion…………………………………………………………………..18
10. Bibliography………………………………………………………………..20
 7

Introduction

Before the passage of the act there were many changes had occurred in England. The industrial
revolution cut the production prices, and brought a great change in the trader’s perspectives. The
cheap rate of production opened the aspect of exports and larger profits. Greater flow of money
created a sense of independence. Many political reforms also changed the thinking and views of
the people in general. In 1830, Whigs gained political power in England, they emphasized on
Rights of men, the principal of ‘laissez faire’ and liberal principals. The liberal movements in
England lead to passage of Reforms Act of 1832. Though there were many who opposed the idea
to cease the company and transfer the complete rule to the crown and agreed with Lord
Macaulay and James Mill’s idea that East India Company should continue only with its political
functions, both of them occupied a high position in the India House and therefore had a great
influence over the reforms brought out by the Charter act. Hence, the Charter Act of 1833 was
passed after lots of socio-economic changes in England.1 In the Charter Act of 1813 the
monopoly of the company in trading in India was seized but the monopoly in trade with China
and trade of tea in India was not altered but the Charter Act of 1833 sized all its commercial
purposes and it became merely political body acting “in trust of his majesty, his heirs and
successors”, i.e., this act declared India as an British colony. The Government of India was to
pay the debts of the company and pay 10.5% dividend per annum till 1874 to the company’s
shareholders. The patronage of the directors over the company was restricted. The nominations
to the Hailey bury College were twice the number of seats available, and the topmost of them
were selected to fill them. This provision agitated the Board of Directors who previously used to
elect persons for company’s services and this agitation led to the amendment of Charter Act of
1833 in 1834 by which the board of directors was also given lease for twenty years.2 There were
no specific reasons to bring in the Charter Act of 1833, but merely to give lease to the company
for another 20 years as mandated by the Regulating Act of 1733 to renew the Charter of the
company in every twenty years.3 However, according to Cowell there were three different areas
of consideration, ill-defined authority, nature of laws and regulation and conflicting judicators.4

1
https://www.lawteacher.net/free-law-essays/constitutional-law/role-of-british-governance-in-india-constitutional-
law-essay.php
2
https://www.historydiscussion.net/british-india/charter-acts-of-company-1793-to-1858-and-its-criticism/5942
3
http://www.brainkart.com/article/Charter-Act-of-1833_1328/
4
H. Cowell, History and Constitution of the Courts and Legislative Authorities, in India, 74
 8

Therefore, the provisions made by this act were directed in three directions, firstly it provided an
“Omni competent” legislature with legislative authority of the whole country. Secondly, addition
of law member to the council and lastly creation of law commission for codification of laws.5
This Act is also called St. Helena Act as it transferred the control of the company to the Crown.
This act also lifted the restriction on European migration to India. This act brought in many
reforms which have affected the present scenario too, like centralization of power, participation
of Indians in civil services, introduction of Law Commission for codification of laws, parts of
which is still used in the present judicial system as well, hence this act played an important role
in formation of the basics of Indian political as well as judicial system.

5
M.P. Jain, Outlines of Indian Legal and Constitutional History, 485.
 9

Provisions:

The Charter Act of 1833 gave lease to the company for another twenty years. The most major
provision brought by the Charter Act was of shift of the company’s functioning from a
commercial body to merely a political agent of crown. The crown demolished the economic
monopoly of the company by the Charter Act of 1813 but it was still allowed trading rights in
china and rights to trade in tea but with this act all the economic functions of the company was
seized all together. As a compensation for the seized powers of the company it was provided that
the Government of India would pay 10.5% dividend per annum to the Board of Directors, it was
also made to pay for the company’s depth. In doing so this act legalized colonization of India as
a British colony.

This Charter Act brought centralization of power by redesignating the Governor-general of

Bengal as the Governor-general of India, making Lord William Bentick the first Governor-
general of British India. This provision also made the governors of Madras and Bombay
subordinate to the Governor-general of India. All the legislative powers now rested in hands of
the governor-in-council and governors of Madras and Bombay could no longer make laws for
their territories. All the confusion regarding the revenue collection was all cleared by give the
powers solely to the Governor-in-council. The council had complete jurisdiction over civil as
well as military matters. However, the decisions of the council could be vetoed by the Board of
Directors. This forms the roots for the present centralized form of government we see on this
present day itself. Henceforth all the rules laid down by the Governor-in-council would be
applicable to all the British territories and this lifted the doubts regarding which set of rules
would be applied on certain areas because earlier all the presidencies could make their own laws.

The president of the Board of Directors was made the Minister of Indian Affairs, whereas the
other members were not to continue as Ministers. The Minister could have two assistants. The
Secretary enjoyed a considerable amount of power as he represented and spoke for the Minister
in the House of Commons when the Minister took his seat in the House of Lords.6

The Act further provided that the presidency of Bengal would be spilt in two Presidencies to be
called as Presidency of Fort William and Presidency of Agra. But later on this provision was

6
https://www.historydiscussion.net/british-india/charter-acts-of-company-1793-to-1858-and-its-criticism/5942
 10

curbed before it came into effect. This act also provided the appointment of lieutenant-governor
for the north western provinces.

The members of the councils of Governors of Bombay and Madras were reduced to two and they
were to keep separate armies under their Commander-in-chief but they would be under the
control of the Central government.7

The act increased the members of the governor-in-council to four. The fourth member was the
law member; this member could attend the meetings of the council by special invitation only. He
could not vote in the council meetings. His presence was not important for consideration of any
kind of bill. His sole responsibility was of legislative work. Under this provision Lord Macaulay
was appointed the first law member. He later headed the First law Commission. It was under his
suggestion only that this provision was brought he believed that “codification of law be entrusted
to a body of jurist and not the entire legislature.”8

The Governor-general was directed to make provisions for the abolition of slavery. He was asked
to take into consideration the family laws while making laws. This act also provided appointment
of more bishops for the Christian citizens.9 The restriction on the migration of British Citizens to
India was lifted, they were now free to move in the country, but they were required to get
themselves registered on arrival. And the governor-general was to see that the Indian subjects
were not abused by the British citizens.

Section 87 of the Charter Act provided “no native of the British territories in India, nor any
natural born subject of “His majesty” therein, shall by any reason only by his religion, place of
birth, descent, colour or any of them be disabled from holding any place, office or employment
under the company”.10 Thus this provision for the first time provided that Indians could now be
the part of administration of the country. The act provided that no Indian citizens would be

7
https://www.historyforexam.com/2018/10/charter-act-of-1833.html
8
M.P. Jain, Outlines of Indian Legal and Constitutional History, 485.
9
https://www.gktoday.in/gk/charter-act-1833_11/#:~:text=Significance%20of%20Charter%20Act%201833%3A
%20Analysis,-For%20many%20reasons&text=Secondly%2C%20end%20of%20East%20India,into
%20administration%20in%20the%20country.
10
https://www.gktoday.in/gk/charter-act-1833_11/#:~:text=Significance%20of%20Charter%20Act%201833%3A
%20Analysis,-For%20many%20reasons&text=Secondly%2C%20end%20of%20East%20India,into
%20administration%20in%20the%20country
 11

discriminated against “by reason of his religion, place of birth, descent and colour” for holding
office. It stated that office would be held on the basis of merit.

Provisions were made under this act for the establishment of Law commission for the
codification of laws for British India. It provided that the laws made in India were asked to be
presented before the British parliament and were to be known as acts. The first law commission
was headed by Lord Macaulay. This law commission was to inquire into the jurisdiction and
powers of the courts, review the judicial system, names and provisions of the existing laws and
present a report to the Governor-in-council, which was to be presented before the British
parliament.
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Effects on the Legal System

The legal system before the enactment of the Charter act of 1833, was in utter chaos in the
country, since all the presidencies could formulate their own rules and regulations, this led to
confusion as to what rules were to be applied by which courts and who all fell under their
jurisdiction. Sometimes, the courts interpreted the laws opposite to the intentions of the
legislature while making the law, the jurisdiction of the courts was not specified and they
extended their area of jurisdiction which caused inconvenience to the public at large. The powers
of the courts established within the country were in a defective state. There were enactments
made by the British parliament defining the powers of the government and courts, prescribing
the course of action for the government, stating which rules would be applicable to the mofussil
areas, clearly showed the defective nature of the Indian legislature. The rules laid out by the
legislature could not be enacted without discussing with the supreme court of that given
presidency; this made the legislative process very slow. The charter allowed the migration of
British subjects to the Indian Territory this would further makes the judicial process difficult as
they have their own set of rules regarding, succession, marriage, etc. There were many sections
of people in India who did not have their own sets of recognized family law this further lead to
complications in the system. Keeping in view all the prevailing conditions, Lord William
Bentick on 14th July, 1829 wrote a letter to the Judges of Calcutta Supreme Court, saying that “it
is a matter of the most urgent expediency to have this country an authority legally contempt to
legislate for all classes and places, subject to the political authority of the honorable East India
Company” 11

The Charter Act of 1833 brought provisions to address the above mentioned drawbacks in the
Indian Legislative System, by bringing centralization of legislative authority. Now, the complete
legislative powers vested in the Governor-in-council but it was still made answerable the Board
of Directors.

The council could make laws for all the subjects whether British or native, it could make laws for
all the courts. It could amend, repeal, or alter laws and regulations. But this legislative power was
subject to certain citizens. The council could not alter any provision of the Charter Act of 1833,
or the Mutiny Acts. It could also not amend any Act of the Parliament to be passed after 1833. It
11
M.P. Jain, Outlines of Indian Legal and Constitutional History, 486
 13

could not amend any unwritten law or constitution of United Kingdom and Ireland. Also, the
laws made by council were supposed to be presented before the parliament for enactment.

The Court of Directors stated certain principles for legislation to be followed by the council.
They stated “no law except one of an occasional kind, or arising out of some pressing urgency,
should be passed without having been submitted to mature deliberation and discussion.” It also
stated “Trite as this maxim may appear we are of the opinion that it should be distinctly and very
carefully acted upon in framing your rules of procedure.” In England “the length and the
publicity of the process by which a law passes from the shape of a project into that of a complete
enactment, and a complete enactment, and the conflict of opinions through which the transit must
be made, constitute a security against rash and thoughtless legislations.” They pointed “that
every project or proposal of law shall travel through a defined succession of stages in council
before it is finally adopted; that at each stage it shall be amply discussed; and the intervals of the
discussion shall be such to allow to each member of the council adequate opportunity of
reflection and enquiry.”12

The appointment of law member to Governor-in-council was another reform suggested in the
legislative filed. After the appointment of the law member the veto of the Supreme Court was
done away with, earlier it was a necessary condition for the application of laws in the
presidencies, it was a long and time taking process, and with the law member present the laws
could be immediately enacted. The law member did not have veto power, that is, even if he did
not support the law it could still be enacted. For the convenience of the law member, it was laid
down that it was not necessary for him to attend all the meetings of the council; he was not given
a vote on any matter other than legislative. Although this provision was made so that the law
member could focus on the laws and legislative work it indirectly made him subordinate to the
other members of the council. However, the law member did attend all meetings even though he
did not have a vote; these meetings gave him information and insights about the prevailing
situations and helped him with legislative functions. With creation of this new legislative
council, the legislative powers of the Governments of Bombay and Madras were done away
with. Although they could submit drafts of the laws to the Governor-general, which they thought
were necessary or may be in the interests of the council.

12
M.P. Jain, Outlines of Indian Legal and Constitutional History, 486-487.
 14

Section 53 of the Charter Act of 1833 provided for the establishment of a law commission in
India to bring uniformity. The members of this commission were to be recommended by the
Board of Directors to the Governor-general-in-council who would make the appointments and
establish the commission as soon as it is convenient. The commission was to enquire about the
jurisdiction, powers, and rules of the existing courts and all the judicial procedure, whether civil
or criminal. The commission was to present a report about its investigations and suggest amends
which would be beneficial for the judiciary as well as people at large. The Charter Act aimed at
bringing a general system of judiciary and code for common laws, and to prepare such a code
and establish such a system the First law commission was appointed.
 15

First Law Commission

Under the section 53 of Charter Act of 1833 the first Law Commission was appointed in the
1835. According to the act the members to be appointed in the in commission were supposed to
be recommendations from the Board of Directors. Accordingly the Governor-general-in council
on 19th February 1835 appointed the council with three members, Charles Hay Cameron, John
Macpherson Macleod and George William Anderson, there was one more appointment of
Fredrick Millet as secretary to the commission. On 25th may, 1835 Lord Macaulay was appointed
as the Chairman of the commission. In 1837, Fredrick Millet was appointed as the fifth member
of the commission, hence reaching the maximum limit of five members as the Charter Act
provided. Amos succeeded Macaulay both as the law member and the chairman to the
commission in 1838; he later on was succeeded by Cameron as the law member. The members
too went certain changes. The commission was under the directions of the Governor-in-council,
who was to assign tasks to the commission. It gave certain powers to the commission, like it
could examine the government officials, collaborate with the Supreme Court, and communicate
with the public.13

The Criminal law at this time was confusion and chaotic and a need was felt for a uniform law
for administration of justice. For this the on 10th December 1834, the commission was asked to
draft a code of common law to applied all through out to country. Lord Macaulay stated the
importance of codification as “As I believe that India stands more in need of a code than any
other country in the world, I believe also that there is no country on which that great benefit can
more easily be conferred. A code is almost the only blessing- perhaps it is the only blessing-
which absolute Government are better fitted to confer on a nation than popular government. We
do not mean that all the people of India should live under the same law: far from it we know how
desirable that object is but we also know that it is unattainable. Our principle is simply this-
Uniformity where you can have it- Diversity where you must have it- but in all cases
Certainty.”14

13
M.P. Jain, Outlines of Indian Legal and Constitutional History, 493-495
14
https://www.lawteacher.net/free-law-essays/constitutional-law/role-of-british-governance-in-india-constitutional-
law-essay.php
 16

The commission prepared the draft of the Penal Code and submitted to the Government of India
in 1837. However, it could not be enacted till 1860. The main work in drafting the code was
done by Macaulay and hence he is known as Father of Indian Penal Code. This Penal Code is
still used in the country along with some of the original laws.15

The second task with which the commission was burdened was to consider the questions
regarding which laws would be applied to non- Muslims and non- Hindu citizens, as an answer
to these conflicts the commission presented Lex Loci Report in 1837. There was much confusion
among the courts as to what laws should be applied in cases of succession, marriage, divorce,
etc. to the people belonging to religions other than Hinduism and Islam. Since the population
was diverse in nature it became very difficult for the courts to deliver justice. However, in
general in the presidencies the English law was applied to such cases and in mofussil areas the
principles of natural justice was applied, i.e., justice, equity and good conscience. Still the courts
found it difficult to read, understand and administer different family laws. There was a dire need
for a uniform law to be used in such cases. Hence, the first law commission in 1837 was given
the task to review the situation and come up with an effective solution; thereafter on 22nd May,
1841, the commission presented the draft for Lex Loci Act with the following as the main
provisions:

 Only that part of the English law would be applied which is suited to the conditions in
India and do not conflict with any of rules and acts passed by the Indian legislative
system.
 In cases related to marriage, divorce or adoption the rules were applicable only to the
Christian citizens.
 It stated that any good and lawful custom, immemorial rule or law, practiced in the
territory was to be protected, and courts could apply the same in their judgments.
 In order to maintain uniformity in laws applied it was held that no act passed by the
British parliament after 1726 would be applicable in India, unless there is a provision in
the act to extend it the Indian Territory.
 The mofussil courts were to apply legal rights but could modify them according to the
principles of natural justice, as earlier.

15
http://law.uok.edu.in/Files/5ce6c765-c013-446c-b6ac-b9de496f8751/Custom/UNIT%20-%204.pdf
 17

 There would be no distinction between the rules applied to both immovable property
and personal property in mofussil courts.
 All the appeals from the mofussil courts were to be made in Supreme Court for the
matters falling under the Lex Loci Act
 This law would not be applicable to Hindus or Mohammedans, unless he adopts another
one.
 In cases where the cause of action occurred before the commencement of the Act, it
would be tried under the principals of natural justice.

The First Law commission although was not very successful and did not have a great impact, but
it gave some major contribution to shaping the present judicial system as such. The Indian Penal
code drafted by this commission is still in use. The major work that was completed by this
commission was codification of laws. It also recommended various changes in procedure of civil
suits and drafted Code of Civil Procedure. The commission continued till 1848, and it published
many reports on different issues but none was a notable one.16

16
M.P. Jain, Outlines of Indian Legal and Constitutional History, 495-497.
 18

Conclusion

Rankin has rightly characterized it as “a watershed in the legal history of India.”17

The Charter Act of 1833; got it royal assent on 28th August, 1833, but it was enacted on 22nd
April, 1834. This act switched the role of the company from economic to merely political and it
now worked as an agent of the crown. Since this act was brought after major changes in England,
it brings many sweeping reforms for the legislative as well as administrative domains. The act
was significant because, for the first time Indians were not to be discriminated against and could
apply for office in the company, they could now be the part of their own country’s
administration. This provision was the first to encourage participation of Indian citizens in the
offices, it provided against the discrimination of Indians on basis of place of birth, religion, etc. It
was in this act that India was legalized a British colony, although it was discussed that company
should be curbed altogether and Crown should assume complete control of the Indian Territory,
but it was debated against and it was provided that the company would now be under the control
of His Majesty.

The first glimpse of centralization of power in Indian history is seen in the provisions of this act;
where in the Governor-general of Bengal was designated as Governor-general of India and the
governments of Bombay and madras were made subordinate to him, he had the sole powers of
legislature. The presidencies were now to follow a uniform law made by the governor-general-
in-council. His council was expanded and new member was added known as the law member,
his sole function was to review and suggest legislative reforms for the country, Lord Macaulay
was appointed as the first Law Member to the country.

Under this act the First Law Commission of India was established which did the major work for
codification of laws in India, they also attempted to present uniform law system for the mofussil.
This codification of laws was of significant importance to the country, as it resolved the issue of
conflicting decisions by different courts on the same matter. This law commission also reviewed
and suggested changes in the procedural codes too. Although the commission did not do
anything of much significance the codified laws proved to be very helpful.

17
M.P. Jain, Outlines of Indian Legal and Constitutional History, 485
 19

This act lifted the restrictions on the European migration to India, now they were free to migrate
to India and become residents, but they were required to get themselves registered with
Governor-general-in-council. Another significance of this act was the abolition of slavery in
India.

In synopsis, the Charter Act brought many provisions which from the roots of the present day
scenarios like the centralized form of government, appointment on the posts of civil servants on
the basis of their merit. The codified laws of that period still used in the present day judicial
system.
 20

Bibliography

 H. Cowell, History and Constitution of the Courts and Legislative Authorities, in India.
 M.P. Jain, Outlines of Indian Legal and Constitutional History
 https://iasshiksha.blog/2019/05/15/the-charter-act-of-1813-1833-and-1853/
 https://www.gktoday.in/gk/charter-act-1833_11/#:~:text=Significance%20of%20Charter
%20Act%201833%3A%20Analysis,-For%20many%20reasons&text=Secondly%2C
%20end%20of%20East%20India,into%20administration%20in%20the%20country.
 https://www.civilserviceindia.com/current-affairs/articles/the-saint-helena-act-1833-or-
the-government-of-india-act-1833/117
 http://legislative.gov.in/about-us/introduction
 https://www.ibiblio.org/britishraj/Marshman3/chapter32.html
 https://www.lawteacher.net/free-law-essays/constitutional-law/role-of-british-
governance-in-india-constitutional-law-essay.php
 http://www.brainkart.com/article/Charter-Act-of-1833_1328/
 https://freeupscmaterial.in/charter-act-of-1833/
 https://www.historyforexam.com/2018/10/charter-act-of-1833.html
 http://law.uok.edu.in/Files/5ce6c765-c013-446c-b6ac-b9de496f8751/Custom/UNIT%20-
%204.pdf
 https://selfstudyhistory.com/2015/02/02/the-charter-act-of-1833/
 https://www.historydiscussion.net/british-india/charter-acts-of-company-1793-to-1858-
and-its-criticism/5942