The Charter of 1600

Formation of east India company

power of East Company
Surat factory and adminstration

East Indies - refer to nations - India, Pakistan, Bangladesh, Myanmar, Nepal, Sri Lanka, the Maldives
and also Thailand, Cambodia, Laos, Brunei, Singapore, the Philippines, East Timor, Malaysia and
Indonesia.
(Dutch-held colonies in the area were known as the Dutch East Indies
Spanish-held colonies were known as the Spanish East Indies
Caribbean is called the "West Indies
The east India Company was formed to do business with the East Indies.
East India Company is also known as East India Trading Company, English East India Company then British
East India Company.)

The oldest among several similarly formed European East India Companies, the Company was
granted an English Royal Charter, under the name Governor and Company of Merchants of London
Trading into the East Indies, by Elizabeth I on 31 December 1600
The charter awarded the newly formed company, for a period of fifteen years, a monopoly of trade
(known today as a patent) with all countries to the east of the Cape of Good Hope and to the west of
the Straits of Magellan. Sir James Lancaster commanded the first East India Company voyage in
1601
As per this charter no other company was allowed to do business with this geographic area with
out the permission and license from the company.
The charter awarded the judicial powers to the company to make laws, to punish servants etc so
that the functioning of company does not stop and company does not face losses.
The company was not allowed to make any laws which may go against the English laws or customs.
The company was supposed to work in democratic manner.
During this time company aim was to do business and make profits, charter does not mention about
the war and controlling other nations or lands.
This is the beginning, development of Indian legislative system.

For Indians this phase is very important as this is beginning of formation of India as well as our
legal system.
The charter gave the legislative power to the company; company found that the limited powers
were useless on the long voyages to control servants and maintain law and order on ships.
To solve this problem company invoked the crowns prerogative and the commander in chief got the
power to give death punishment to servants by using the law of martial.
On 24th January 1601 Queen Elizabeth gave first time this right to commander in chief.
Using this power first time on 28th Feb. 1616 at Surat Port, person named as Gregory killed an
Englishman and commander in chief gave his death sentence.
PREROGATIVE meaning in English law. The royal prerogative is an arbitrary power vested in the
executive to do good and not evil.
With the charter of 1600 the company landed at the Surat Port during the Jehangirs reign to do
business of Import and Export between the East Indies and England.
Before the arrival of East India Company in Surat, the Portuguese already established their business
at Surat.
After arrival of East India Company at Surat, the company and Portuguese fought with each other
and in the year 1612 the company won and established their first factory at Surat with the
permission of the local Moghul Governor.
Factory was a place where company employees stayed, a big warehouse for storage of goods and
different offices.
The company was running its business democratic way and as per the powers given to them by the
charter.
Later company realized that to establish there business at Surat permanently they need permanent
trading facilities directly from the Moghul Emperor, with this view in the year
1915, James I sent an ambassador, Sir Thomas Roe to the Moghul Emperor and the Emperor issued
the FARMAN OR FIRMAN , grating certain facilities powers to the company, Englishmen. Like they
were allowed to hire a place and established the factory.
All the fights between Englishmen were solved by the company head the head was known as
Governor or President.
In the year 1687, the seat or office of the President was transferred to Bombay, and slowly Surat

lost its importance.

Later in future Madras, Calcutta and Bombay came to known as the Presidency Towns and the
territories around these towns were known as Mofussil.
mofussil areas: - n. [Urdu] outlying districts, away from urban areas or big city centres
Surat Factory and administration
The factory got the administrative as well as judicial set up.
The president and council were appointed by the company who hold the administrative
power.
All decisions in the council meeting were taken by a majority of votes.
The president got one vote only and no right to overrule the members.
Its very interesting to know that this time at Surat there was no special law, or territory laws were
present neither laws regarding succession, marriage or divorce or inheritance,
all the laws were derived from religion ,
for Muslim their own laws ,
for Hindus their own laws, etc.
But regarding criminal matters only Muslim law was followed.
There was no uniform law among the people.
Englishmen got permission from the Moghul Emperor that they should be allowed to follow their
own laws inside their factory and on their own people which they got.
This way from the beginning Englishmen here in East Indies, surat followed their own british laws.
As per Moghul orders the fights between local people and English people came under local
jurisdiction, tribunals at Surat.
That time local justice system was corrupt and who got the more money won the case. But
Englishmen rarely went to local courts; they themselves administered all justice at Surat.