Merits and Defects of the

Regulating Act 1773.

1. Improvements in the constitution
of the company
The constitution of the company was
improved by the Regulating Act.
The term of the directors of the Company
before this Act-1year, after this act-4 years
4years-directors could work efficiently
 2. Centralization of authorities
The Governor General and Council of Calcutta
Presidency constituted the central executive
authority.
The civil and military govt. was vested in them
Bombay & Madras were under the control and
superintendence of the Governor General and
Council in Calcutta in matters of war and peace
Establishment of strong central government
which could meet the Indian Princes or powers
in the battlefield with united Armed Forces of the
Companys Government.
 3. British Governments Control
over the Company
The control made effective
Directors of the Company were made
responsible
Obligatory for the directors of the company
to place regularly before the Secretary of
State all affairs of the Govt. in India,
Companys correspondence and Revenue
related matters.
 4. Governor General & Councils
power to make rules and
regulations
Can make rules for the good order of Civil
Government of the Companys settlements at
Calcutta and other subordinate factories and
places
Can make rules and regulations according to the
local needs
Check was put on this legislative powers
Legislative powers under the supervision of the
supreme Court
 5. Establishment of the Supreme
Court at Calcutta
The Act authorized to establish Supreme
Court at Calcutta
Judges of the Court were expert in law
Judicial administration was brought under
the control of the professional lawyers
Appointment and removal of the judges
were not put in the hands of the
company's executive authority.
 They were appointed by British Crown and
they were to hold office during the Crowns
pleasure
The Act made the Supreme Court
independent of the executive control
This Court with wide jurisdiction
It was empowered to superintend the
Court of Collector, Court of Requests,
Quarter Sessions
 Supreme Court was authorized to
administer common law and equity both,
whichever it thought better in the interest
of justice
The same authority to apply both laws, so
less chances of conflicts.
 6. Impartial Administration
Fair and impartial administration in the
companys settlements in India
Express provisions relating to prohibition
on acceptance of presents, donations,
gifts or rewards-for Governor General,
Councilors, Judges of the Supreme Court,
Civil and Military officers
Prohibition on Private Trade
Defects of Regulating Act
 Uncertainty was the main defect
The extent of the powers of the Governor
General and Council was uncertain
Extent of the jurisdiction of the Supreme
Court under the Act was uncertain
Relation between the Governor General
and Council and the Supreme Court was
uncertain
 Relation between the Adalats in Bengal,
Bihar and Orissa and the Supreme Court
was uncertain
The Act failed to define the various terms
used therein like Her Majestys subjects,
British Subjects etc.
 1. Defects relating to the
composition of the Executive
Decisions of the Council were taken by
majority and the Governor General was
allowed only casting vote.
The Councilors sent from the England
were suffering form the superiority
complex and they were prejudiced against
the Governor General Warren Hastings.
 A conflict between the Governor General
and his Council arose.
Since the majority was against the
Governor General, Warren Hastings, he
found it very difficult to take decisions on
policy matters
Efficiency of the executive was lessened
due to this conflicts
 2. Uncertainty
Uncertainty as to the relation between the
Governor General and his Council of the
Calcutta Presidency and the Governors
and their councils of other presidencies
The term imminent necessity was not
defined
 3. Uncertainty as to the legislative
powers
It was not made clear whether or not the
rules and regulations so made by the
Governor General and Council were to
applied to the territories of Bengal, Bihar
and Orissa
As Regards Calcutta, the Rules could be
made because it was under the British
Sovereignty.
 But the Power to make rules and
regulations for the terrtories of the Bengal,
Bihar and Orissa was a debatable issue.
These territories were under the Mughal
Sovereignty.
Regulating Act was intentionally made
vague.
 4. Uncertainty as to the jurisdiction
of the Supreme Court
1. Uncertainty as to the jurisdiction, powers, and
position of the Supreme Court and its relation
with the Governor General in Council and the
Companys Adalats
It failed to define with certainty the extent of
the jurisdiction of the Supreme Court. it was
stated that the Supreme Court would exercise
its jurisdiction over all British subjects and all
his Majestys subjects residing in Bengal, Bihar
and Orissa and
 Persons employed by or directly or
indirectly in the service of the Company or
any of his Majestys subjects and also the
inhabitants of the territories of Bengal,
Bihar, and Orissa who voluntarily entered
into contact with a subject of His Majesty
to submit the disputes to the jurisdiction of
the supreme court provided amount
involved was more than Rs. 500