ARRIVAL OF THE EAST INDIA COMPANY

Establishment and Objectives of the East India Company

• The British Empire in India emerged uniquely through the commercial East India Company (EIC), incorporated in England by Queen Elizabeth’s Charter on December 31, 1600.
• The official name of the EIC was “The Governor and Company of Merchants of England trading into the East Indies.” The Company’s focus was purely on expanding British trade interests across the world, not initially for political control.
• The EIC was granted an initial 15-year lifespan, subject to renewal based on profitability, with powers to conduct trade east of the Cape of Good Hope, covering regions like India, America, and Africa. This trade monopoly barred other British subjects from trading in these regions.

Structure and Governance of the East India Company

• The Company’s governance was democratic; a General Court of all members elected a Governor and 24 Directors, known as the Court of Directors, responsible for Company operations. Each director served a one-year term, with the General Court holding the right to remove directors for misconduct.
• The Court of Directors managed all business, with governance reflecting corporate structure rather than sovereign rule, an indication of its commercial orientation at inception.

Limited Legislative Powers of the East India Company

• The 1600 Charter allowed the EIC minor legislative powers within its General Court, but laws created had to align with English law, focusing on internal governance and operational discipline.
• Legislative authority was restricted to fines and imprisonment, not allowing capital punishment, emphasizing the Company’s role as a commercial entity rather than a territorial ruler.
• This limited legislative scope eventually expanded, laying the foundation for the Company’s later governance roles as its territorial ambitions grew.

Renewal of Charter in 1609

• In 1609, King James I renewed the Company’s Charter, granting it perpetual existence subject to termination by the Crown on a three-year notice if deemed harmful to public interests.
• This extension continued the 1600 privileges, highlighting the Company’s economic success and its strategic importance to England.

THE ENGLISH FACTORY AT SURAT

Establishment of the English Factory at Surat

• With the Charter’s powers, the EIC’s representatives arrived in India during Jahangir’s reign. Surat, a thriving Mughal port town with a strong commercial base, became their first business hub.
• The English overcame Portuguese resistance to establish their factory in 1612 after defeating Portuguese forces. Recognizing the need for stronger ties, they secured permission directly from Emperor Jahangir through Sir Thomas Roe’s 1615 diplomatic mission to the Mughal court.

Key Privileges Secured by Sir Thomas Roe

1. Religious and Legal Autonomy: The English were permitted to follow their own religion and laws without interference.
2. Independent Tribunals: Internal disputes among Englishmen could be resolved by their own tribunals, exempting them from local jurisdiction.
3. Local Disputes: Disputes involving Indians were to be resolved by local authorities, ensuring English traders operated within a defined legal framework.

Right to Self-Government at Surat

• Roe’s negotiations established English self-governance, exempting them from Mughal oversight within Surat. This autonomy allowed the EIC to enforce its regulations for English residents, preserving British customs amidst Indian law.

Administration and Structure of Surat Factory

• Surat functioned as the primary administrative center or “presidency” for the EIC in India, governed by a President and Council. Decisions were made by majority vote within the Council, where each member, including the President, had equal voting power.
• This democratic model was later replaced by a stronger executive role for governors as the EIC’s territorial influence grew.

Hierarchical Structure of Company’s Servants

• EIC employees at Surat were categorized in a rigid hierarchy:
  1. Writers: Entry-level, paid £10 annually.
  2. Factors: Intermediate level, paid £20 after five years.
  3. Senior Factors: Advanced level after three additional years.
  4. Merchants: Top-tier, receiving £40 annually and eligible for Council roles and factory leadership.
• Employees resided communally within the factory, and low salaries were offset by the privilege of private trade, making service in India financially attractive despite modest official pay.

LEGAL SYSTEM AT SURAT

Dual Legal System for English at Surat

• The English lived under dual laws: English law governed internal disputes among themselves, while Indian law applied to disputes involving Indian parties, as per Mughal Emperor Jahangir’s orders.
• The dual legal framework highlighted cultural differences, with English merchants preferring their secular laws over India’s religiously influenced Hindu and Muslim laws.

Administration of Justice within the English Community

• The President and Council acted as judges in criminal and civil matters among Englishmen, vested with judicial power under commissions from the English Crown.
• King James I’s 1623 commission empowered them to administer justice, including death penalties for grave offenses (like mutiny), subject to trial by an English jury.
• Although English law was officially applied, decisions often reflected the personal judgment of the non-legal Council members, who relied on fairness rather than strict legal principles.

Mixed Jurisdiction for Disputes with Indians

• Cases involving both Englishmen and Indians fell under the Mughal courts, though English merchants often avoided local tribunals due to prevalent corruption, occasionally resorting to self-help remedies if possible.

Decline of Surat and Shift to Bombay

• By 1687, the EIC moved its headquarters from Surat to Bombay, preferring Bombay’s strategic location. Consequently, Surat’s significance as a presidency waned as Bombay became the central hub for EIC’s western India operations.

These foundational legal and administrative structures at Surat formed the basis for the EIC’s eventual expansion of control across India, transitioning from a trading entity to a ruling power through gradual accretion of legal and territorial authority.