6.3 Early Judicial Institutions: Mayor's Courts, Supreme Court at Calcutta, and Sadar Diwani/Nizamat Adalats

1. Context & Foundation

In the mid-eighteenth century, as a profit-driven British merchant guild transformed into a territorial conqueror, it faced a massive administrative dilemma: how to dispense justice to millions of alien subjects. Historically, justice in Mughal India was highly decentralized and community-based, administered locally through village panchayats, caste elders, and regional qazis, or arbitrarily by local rajas. The East India Company’s early judicial initiatives, such as the Mayor's Courts of 1726, were designed strictly to resolve commercial disputes among British merchants residing in their coastal enclaves of Madras, Bombay, and Calcutta.

However, after acquiring the Diwani rights of Bengal in 1765, the Company stood at a critical crossroad. Robert Clive's Dual Government plundered the province and left it judicially destitute. The Company controlled the treasury but assumed zero administrative responsibility, while the powerless Nawab was left to maintain law and order without any funds. When Warren Hastings arrived in 1772 to dismantle this corrupt system, he realized that the Company had to construct a standardized legal framework to protect its revenue collection. This gave birth to the Adalat system, which attempted to adapt traditional Mughal legal machinery under European supervision.

This expansion sparked a fascinating human and legal drama: the collision of English common law with traditional Hindu and Islamic personal laws. The Regulating Act of 1773 established a Crown-appointed Supreme Court at Calcutta, which applied English law and claimed jurisdiction over all British subjects and territories. This immediately triggered a fierce constitutional struggle between the Supreme Court, led by Chief Justice Sir Elijah Impey, and the Governor-General’s Executive Council. The Supreme Court repeatedly vetoed executive decisions and arrested Company revenue officers, bringing the colonial administration to a grinding halt. This jurisdictional warfare was only pacified by the Act of Settlement of 1781, which exempted official executive actions and revenue collection from the court's purview. The judicial evolution culminated in Lord Cornwallis’s ideological drive to separate revenue from justice (the Cornwallis Code of 1793) and Lord William Bentinck’s subsequent measures to make the courts more accessible by introducing local languages and Indian judges, laying the direct foundation of India's modern judicial framework.

2. Detailed Study Notes

A. Early Presidency Justice: The Mayor's Courts (1726)

• The Foundation: Established by the Royal Charter of 1726 issued by King George I, these courts were set up in the three presidency towns of Madras, Bombay, and Calcutta.

• Significance: They marked the very first introduction of English common law and a formal judicial system based on recorded precedents in India.

• Jurisdiction & Limitations:

  • They were strictly confined to the presidency towns and applied only to British subjects and those living under Company protection.

  • The judges were the Mayor and nine Aldermen, who were usually senior mercantile servants of the Company with no formal legal training.

  • They completely ignored indigenous laws and customs, creating deep resentment when native inhabitants were subjected to strange English legal penalties.

B. The Adalat System under Warren Hastings (1772–1785)

Warren Hastings overehanded the administration of justice in 1772 by establishing a dual-court system in every district, utilizing the existing Mughal structure as the baseline:

                         ┌────────────────────────────────────────┐
                         │      WARREN HASTINGS ADALAT SYSTEM     │
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  CIVIL DISPUTES (Diwani)                                                 CRIMINAL DISPUTES (Faujdari)
• District Diwani Adalat                                                • District Faujdari Adalat
  (Presided by European Collector)                                       (Presided by Indian Qazi & Mufti)
• Sadar Diwani Adalat (Calcutta)                                        • Sadar Nizamat Adalat (Murshidabad)
  (Presided by Governor & Council)                                       (Supervised by Deputy Nizam/Daroga)

• District Diwani Adalat (Civil Court):

  • Established at the district level and presided over by the European District Collector.

  • It resolved civil disputes, property claims, and marriage issues using traditional personal laws—Hindu laws for Hindus and Muslim laws for Muslims—which were interpreted by local pandits and maulvis.

• District Faujdari Adalat (Criminal Court):

  • Presided over by native Indian officers, specifically a Qazi and a Mufti, under the general supervision of the European Collector.

  • It administered Islamic criminal law (Sharia).

• The Appellate Adalats:

  • Sadar Diwani Adalat: Located in Calcutta, this was the highest civil court of appeal, presided over by the Governor-General and members of his Supreme Council.

  • Sadar Nizamat Adalat: Located initially at Murshidabad, this was the highest criminal court of appeal, headed by a Deputy Nizam or Daroga-i-Adalat, and assisted by the Chief Qazi and Chief Mufti.

C. The Supreme Court of Judicature at Calcutta (1774)

• Establishment: Formally set up in 1774 under the provisions of the Regulating Act of 1773.

• Composition: Consisted of one Chief Justice and three other judges appointed directly by the British Crown. Sir Elijah Impey was appointed as the first Chief Justice.

• The Conflict: The Act failed to define the boundary of jurisdiction between the Supreme Court and the Governor-General in Council. The Supreme Court claimed authority over all Company servants and revenue collectors, leading to intense legal clashes:

  • The Court applied English law rigidly, famously hanging the local noble Nanda Kumar for forgery—a crime that carried the death penalty in England but was only a civil misdemeanor under Indian law.

  • The Court arrested Company revenue officers who attempted to collect land taxes, severely threatening the Company’s financial stability.

D. The Act of Settlement of 1781 (The Judicature Act)

To resolve the crippling deadlock between the judiciary and the executive, the British Parliament passed the Act of Settlement in 1781:

• Executive Exemption: The Governor-General, his Council members, and any Company servants acting under their official authority were completely exempted from the jurisdiction of the Supreme Court for any official acts.

• Revenue Exclusion: The Supreme Court was strictly barred from interfering in any revenue matters or issues arising from the official collection of land taxes.

• Protection of Native Personal Laws: The Court was directed to respect and apply the traditional personal laws, religious usages, and social customs of the native population during trials.

E. The Cornwallis Judicial Reforms (1786–1793)

Lord Cornwallis permanently structured the Indian judiciary by introducing the celebrated Cornwallis Code of 1793, based on the core principle of the separation of powers:

• Divesting the Collector: Cornwallis stripped the District Collector of all magisterial and civil judicial duties, leaving him solely responsible for revenue collection.

• Creation of District Judge: The civil judicial duties were transferred to a newly created officer called the District Judge, who presided over the District Diwani Adalat.

• Abolition of Fauzdari Courts: Cornwallis abolished the native-presided District Fauzdari Adalats. In their place, he established four European-judged Provincial Circuit Courts at Calcutta, Dacca, Murshidabad, and Patna. These courts toured the districts twice a year to hear criminal cases and civil appeals.

• Gradation of Civil Courts:

  1. Munsif Court (Lowest, presided over by Indian officers).

  2. Registrar Court (Presided over by a European officer).

  3. District Court (Presided over by the District Judge).

  4. Four Provincial Circuit Courts (Appellate courts).

  5. Sadar Diwani Adalat (Calcutta, under the Governor-General and Council for cases exceeding 1,000 rupees).

  6. King-in-Council / Privy Council (London, for appeals exceeding 5,000 pounds).

• Abolition of Court Fees: Cornwallis abolished all court fees to make justice accessible. Ironically, this led to a massive, uncontrollable spike in litigation, clogging the courts for decades.

F. William Bentinck’s Reforms (1828–1833)

Lord William Bentinck reorganized the judiciary to make it cheaper, faster, and more accessible:

• Abolition of Circuit Courts: Bentinck abolished the four Provincial Circuit Courts established by Cornwallis, which had become notorious for delaying trials. Their duties were transferred to the District Collector and Magistrate, under the supervision of newly created Commissioners of Revenue and Circuit.

• Sadar Courts at Allahabad: Established a separate Sadar Diwani Adalat and Sadar Nizamat Adalat at Allahabad to serve the population of the Upper Provinces, ending Calcutta’s judicial monopoly.

• Introduction of Vernaculars: He abolished the mandatory use of Persian in lower courts, allowing suitors to use their local vernacular languages to present cases, while English replaced Persian in the Supreme Court.

• Indianization of the Judiciary: Elevated the role of Indians by appointing them to higher judicial posts such as Sadar Amins, Deputy Magistrates, and Subordinate Judges.

G. Comparison of Early Judicial Frameworks

H. Regional Deccan, Hyderabad State & Telangana Connections

• The Dual Legal System in the Deccan: While the British unified and codified their legal system, the Nizam's Hyderabad State maintained its own distinct legal framework. The High Court of Hyderabad (Sadr-ul-Aliya) was established on similar lines to the British High Courts.

• Persian to Urdu Transition: While Bentinck replaced Persian with English in British India in 1835, Hyderabad maintained Persian as the official language of the court and administration until 1884, when Salar Jung Paragraph II transitioned the state language to Urdu, demonstrating a distinct administrative timeline in the Deccan.

• Sikh Troops and Revenue Collection: During the period of Punjab's annexation, Maharaja Chandu Lal, the influential Peshkar (prime minister) of Hyderabad, actively recruited Sikh soldiers from Punjab to form a disciplined irregular force called the Sikh Jemadars. These troops were stationed in Hyderabad to guard treasuries and maintain law and order. This migration laid the foundation of the historic Deccani Sikh community in Hyderabad and Nanded (Hazur Sahib).

3. Quick Revision Cheat Sheet

• 1726: Mayor’s Courts established in Madras, Bombay, and Calcutta; first introduction of English common law.

• 1772: Warren Hastings introduces the Adalat system; District Diwani (civil, Collector) and Fauzdari (criminal, Qazi/Mufti) courts established.

• 1773: Regulating Act provides for the Supreme Court at Calcutta, established in 1774 with Sir Elijah Impey as first Chief Justice.

• 1781: Act of Settlement exempts the Governor-General, his Council, and revenue collection from the Supreme Court's jurisdiction.

• 1793: Cornwallis Code establishes the separation of powers. Civil justice is taken away from the Collector and given to the District Judge.

• Circuit Courts: Four European appellate courts established by Cornwallis in Calcutta, Dacca, Murshidabad, and Patna.

• 1831: William Bentinck abolishes Cornwallis’s Circuit Courts and establishes Sadar Courts at Allahabad.

• Court Language Shift: Bentinck substitutes vernacular languages for Persian in lower courts, and English in the Supreme Court.

• 1861: The Indian High Courts Act unifies the dual-court system by merging the old Supreme Courts and Sadar Adalats into unified High Courts at Calcutta, Bombay, and Madras (effective 1862).

4. Exam Strategy & PYQ Focus

High-Yield Focus Areas

• The Separation of Powers Catalyst: PYQs frequently target the exact mechanism of the Cornwallis Code of 1793. Remember that it separated revenue administration from civil justice, transferring civil judicial duties from the District Collector to the newly created post of the District Judge.

• First Chief Justice Match: Match the first Chief Justice of the Calcutta Supreme Court, Sir Elijah Impey, with the Regulating Act of 1773.

• The Act of Settlement (1781) Objective: Focus on the detail that this Act was passed specifically to protect the revenue collection of the Company and the official acts of the Governor-General from judicial interference.

• Bentinck's Appellate Relocation: Remember that Bentinck set up separate Sadar Diwani and Nizamat Adalats at Allahabad to ease the judicial access for the Upper Provinces, ending Calcutta's monopoly.

• Abolition of Court Fees Consequence: Note that the abolition of court fees under Cornwallis in 1793 led to a massive, immediate rise in litigation, creating a major administrative bottleneck.

What to Skip / Low-Yield

• The minor personal background stories of individual aldermen who sat on the Mayor's Courts in the early eighteenth century.

• Detailed list of minor, short-tenured judges who sat on the Calcutta Supreme Court after Sir Elijah Impey.

How to Study This Topic

1. Draft a Judicial Hierarchy Tree: Draw a simple flowchart tracing the civil and criminal court ladders under the Cornwallis Code of 1793. Highlight where European and Indian officers operated.

2. Contrast the Adalat and Supreme Court Systems: Clearly separate the Company Adalat system (which applied personal laws under Collectors and Qazis) from the Crown Supreme Court system (which applied English law under Royal Judges), helping you understand why they clashed so violently prior to 1781.

5. Chronology & Broader Context (Past – Present – Future)

Establishment of Mayor's Courts in Presidency Towns (1726)
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Company Secures Diwani Rights of Bengal (1765) & Dual Government Era (1765–1772)
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Warren Hastings Abolishes Dual Government & Establishes Adalat System (1772)
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Regulating Act of 1773 ──> Supreme Court of Calcutta Established under Sir Elijah Impey (1774)
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Jurisdictional Clash: Supreme Court vs. Governor-General's Council (1774–1781)
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Act of Settlement of 1781: Revenue & Executive exempted from Supreme Court
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Cornwallis Code of 1793: Separation of Powers & Office of District Judge Created
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Bentinck's Judicial Reforms: Circuit Courts Abolished & Sadar Courts set up at Allahabad (1831)
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First Law Commission under Macaulay (1834) ──> Codification of IPC (1860) and CrPC (1861)
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Indian High Courts Act of 1861: Supreme Courts & Sadar Adalats Merged into High Courts (1862)
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Federal Court of India Established under GOI Act 1935 (1937)

• Pre-Context:

  • 1726: The establishment of Mayor's Courts introduced the concept of English common law, but its narrow jurisdiction restricted to British merchants highlighted the absolute lack of any unified, pan-Indian judicial framework under early EIC commercial operations.

• Concurrent Events:

  • The Seven Years' War (1756–1763) & Warren Hastings' Adalat Reforms (1772): Hastings' efforts to streamline and secure Bengal’s revenues coincided with the Company’s massive financial crisis, prompting the British Parliament to pass the Regulating Act of 1773 to bring corporate administrative and judicial affairs under direct state supervision.

• Post-Context:

  • 1861: The unification of the dual-court system under the Indian High Courts Act of 1861 marked the permanent consolidation of British legal paramountcy, paving the way for the systematic codification of civil and criminal laws (IPC and CrPC) that continue to serve as the baseline of the modern Indian judicial system.