Charter of 1600 and 1661

Charter Of 1600
The Charter of 1600 was the founding charter of British Rule in India
although no one in England ever dreamed that the subcontinent of India
would be under their control. This Charter was granted by Queen Elizabeth to
the East India Company on 31 December 1600. One of the main goals of this
Charter was to meet the competition which was set up by the Portuguese
and the Dutch. All the necessary provisions required for the constitution of
the government within the laws of any territory were mentioned in this
Charter. This also permitted the company to traffic, build factories and
promote British trade and commerce in Africa, America, and Asia. Under this
charter, the company also received certain legislative power which was very
limited and restricted in scope and character. They were authorised to make
reasonable laws and impose reasonable punishment on both criminal and
civil cases. The punishment provided by the company for the infringement of
law could only consist of fines, forfeiture, and imprisonment, no harsh
punishment such as capital punishment could be prescribed by the company.
Thus cases of serious crime such as murder were often referred to the
Company’s authorities in England for advice as they could not be dealt with
by the company laws. The punishments provided by the company had to be
in accordance with the laws and customs of England. This was done to
maintain good governance within the company.
Provision under the Charter Of 1600

 The duration of the charter was for a period of 15 years and the
same could be revoked by providing a notice of 2 years if the trade
carried out by the company did not appear profitable.
 The charter allowed the company to have exclusive trading rights in
the regions of Asia and Africa.
 Their geographical jurisdiction was confined to the region of Asia,
Africa, and America.
 No British subject was permitted to carry out trade within this area
i.e. eastward to the Cape of Good Hope up till the Strait of Magellan
without a licence from the company.
 Unauthorised traders were subjected to forfeiture of ships and
goods.
 The affairs of the company must be conducted in a democratic
manner.
 All the members of the company were to form a ‘General Court’ and
the general court was to annually hold a meeting to elect a
Governor and 24 directors to form the ‘Court of Directors’ who looks
after the management of the affairs of the business. The governor
and the director of the Court of Directors were to hold their post for
a period one. The General Court had the authority to remove the
governor or the directors before their period of expiration and elect
new members to fill the vacancy for the remaining year.
Shortcomings of the Charter Of 1600

 The legislative powers conferred on the company were limited and
restricted
 The company did not have any authority to adequately deal with
cases of serious crime
 The charter did not refer to the territorial governance of any
territory. Thus no territorial powers were conferred on the
company.
Thus under this Charter, the East India Company with its official title as “ The
Governor and company of merchants of London trading into the East Indies”
was incorporated in England which settled its constitution, powers, and
privileges. The limited legislative powers granted to the company under this
charter were of great historical importance and further developments on
these powers gave rise to Anglo Indian Codes.
Charter of 1661
From the Charter of 1600 to the present charter the East India Company had
spent 60 years in the subcontinent of India. During this period The East
India Company started dabbling in Indian politics by taking advantage of
disunity among the local kings. The East India Company started assisting the
local kings to expedite the internal conflicts that were already prevalent in
the land. By doing this the company started gaining the confidence of the
local kings who further helped them expand their trade. They were also
awarded land in Surat and Madras where they built their factories and
fortified them. For the sake of governance of these regions where the
factories were established they required judicial power which was not time-
consuming.
Another problem faced by the company was that they did not have the
proper authority to punish the people or natives who were a part of the
company but they were trading and residing within their territory of the
company settlements. Thus they put forth various proposals before the
Crown to provide a legal instrument that would help them have better control
over the regions under their jurisdiction and also so they could penalise the
interlopers (lawbreakers).
Through the factories set up by the company, they started generating a lot of
income which was quite beneficial for the British fund. Thus the crown felt it
was very necessary to provide the company with facilities and power to
expand and grow their income. The dependence of the growth of income was
based on the legal adjudication system.
Keeping all this in mind the Charter of 1661 was issued by King Charles II on
the 3rd of April 1661. This charter was also called the Judicial Charter as it
was the first step of establishing a judicial court in India. Under this Charter
King, Charles II broadened the authority of the company by providing the
company with law-making powers and other additional powers such as to
coin money, punish lawbreakers, etc.
Provision under the Charter of 1661
Appointment of officers
Under this Charter, the company was allowed to appoint a Governor, Council,
and different officers for the administration of justice and governance over all
subjects and workers of the Company.
Judicial administration
Under this Charter, the company was given authority to the Governor and
Council to adjudicate and execute the following matter in accordance with
the English Law
1. Cases concerning the company

2. Matters within the jurisdiction of the company
3. All cases of civil and criminal nature including cases of capital
offences unlike the Charter of 1600 that could not hear matters
concerning capital punishment.
This Charter also authorised the Governor and Council to hear matters of all
inhabitants within the company’s settlement whether they were Indians,
Englishmen, or Europeans on contrary to the Charter of 1600 which allowed
the company to look into matters concerning the cases of servants of the
company.
This Charter also provided certain directions to the Governor and Council
saying that cases of all inhabitants residing within the settlement of the
company must be judged according to the English including the cases of
Indian habitants residing within the settlement of the company.
Punishment
Under the Charter of 1600 the company was allowed to pass simple
punishments such as fine and imprisonment but under the Charter of 1661
the Governor and council were not only enabled to hear all civil and criminal
cases but they could also award any kind of punishment including the death
penalty. It is important to note that all aforementioned judicial powers
conferred on the company are to be exercised only by the Governor and
Council are chosen by the company. In the absence of the Governor, the
Chief Factor and the council would come to power and it was their duty to
either send the offenders to a place where there was a Governor or to
England for trial.
Security
This charter authorised the company to maintain the armed forces, weapons,
and fighters ship for self-protection.
Right to administration
The Charter gave complete administration in the hands of the company. They
could administer factories, cities, or colonies under their control. To take care
of black market traders who interfered in the trade monopoly, the company
was authorised to send the offenders to England for trial.
Shortcomings of the Charter of 1661

 The Charter of 1661 did not separate the judiciary from the
executive. Here the Governor and Council were both the judiciary
and the executive.
 Under the Charter, the Governor and the members of the council
who were looking at the administration of the country were
merchants and not lawyers. Thus the judicial administration of the
company was in the hands of laymen.
 As the Governor and the members of the Council were laymen they
did have much knowledge of English law therefore they could not
provide justice properly. Since they lacked knowledge of English law
they had no other option but to decide the cases of both Indians and
Englishmen based on common sense and sense of justice.
 This Charter also looked at cases concerning the Indian inhabitants
in accordance with English law. Thus Indians felt the usages of their
laws and customs could not be protected.

Charter of 1600 and 1661

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Charter Of 1600

Provision under the Charter Of 1600

Shortcomings of the Charter Of 1600

Provision under the Charter of 1661

1. Cases concerning the company

Shortcomings of the Charter of 1661

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