Law and the Economy in Colonial India Markets and Governments in Economic History A series edited by Price Fishback See also in the series: golden rules: the origins of california water law in the gold rush by Mark Kanazawa the pox of liberty: how the constitution left americans rich, free, and prone to infection by Werner Troesken well worth saving: how the new deal safeguarded home ownership by Price Fishback, Jonathan Rose, and Kenneth Snowden the charleston orphan house: children’s lives in the first public orphanage in america by John Murray the institutional revolution: measurement and the economic emergence of the modern world by Douglas W. Allen Law and the Economy in Colonial India TIRTHANKAR ROY and ANAND V. SWAMY The University of Chicago Press Chicago and London Tirthankar Roy is professor of economic history at the London School of Economics and Political Science. Anand V. Swamy is professor of economics at Williams College. The University of Chicago Press, Chicago 60637 The University of Chicago Press, Ltd., London © 2016 by The University of Chicago All rights reserved. Published 2016. Printed in the United States of America 25 24 23 22 21 20 19 18 17 16 1 2 3 4 5 ISBN- 13: 978- 0- 226- 38764- 2 (cloth) ISBN- 13: 978- 0- 226- 38778- 9 (e- book) DOI: 10.7208/chicago/9780226387789.001.0001 Library of Congress Cataloging- in- Publication Data Names: Roy, Tirthankar, author. | Swamy, Anand V., author. Title: Law and the economy in colonial India / Tirthankar Roy and Anand V. Swamy. Other titles: Markets and governments in economic history. Description: Chicago ; London : University of Chicago Press, 2016. | ©2016 | Series: Markets and governments in economic history | Includes bibliographical references and index. Identifiers: LCCN 2015047755| ISBN 9780226387642 (cloth : alkaline paper) | ISBN 9780226387789 (e- book) Subjects: LCSH: India— Economic policy. | India— Economic conditions. | India— History— British occupation, 1765- 1947. Classification: LCC HC435 .R68 2016 | DDC 349.5409/034— dc23 LC record available at http:// lccn .loc .gov /2015047755 ♾ This paper meets the requirements of ANSI/NISO Z39.48- 1992 (Permanence of Paper). To Jyotika and Sudakshina CONTENTS List of Illustrations / ix Acknowledgments / xi ONE / Introduction / 1 TWO / The Process of Legislation, 1772– 1857 / 10 THREE / Landed Property: Security and Incentives / 27 FOUR / Landed Property and Credit / 54 FIVE / Succession of Property: Joint versus Individual Right / 80 SIX / Labor Law: From “Slavery” to Trade Union / 104 SEVEN / Contract: Late Westernization / 123 EIGHT / Corporate Law: Flawed Westernization / 142 NINE / The Burden of Procedures / 159 TEN / Conclusion / 173 Timeline / 179 Notes / 181 Glossary / 209 References / 213 Index / 229 ILLUSTRATIONS Maps 1.1. India, 1939 / 8 3.1. Types of land settlements, 1858 / 35 6.1. Tea- growing regions in the northeast / 110 Tables 2.1. Suits pending in the Sudder Dewanny Adawlaut / 25 3.1. Percentage of land under occupancy and settled raiyats and others, Bihar, ca. 1912 / 42 3.2. Percentage of land under occupancy and settled raiyats and others, Chittagong, ca. 1908 / 42 3.3. Rent law suits in Bengal, subordinate courts / 43 3.4. Methods of rent recovery: Madras Presidency / 48 4.1. Registered loans in Madras Presidency, 1889– 1891 / 61 4.2. Transfers to nonagriculturists or new agriculturists (NNA), Punjab / 69 4.3. Transfers to nonagriculturists, 1868– 1891, in Gujranwala District, Punjab / 69 4.4. Delays in adjudication of suits in lower courts, 1922 (subordinate judges and munsifs) / 73 5.1. Major enactments on property / 98 6.1. Number of inspections of registered factories, 1939 / 117 6.2. Cases filed under Factories Act and number of convictions, 1939 / 117 8.1. Evolution of corporate legislation in India, 1850– 1936 / 149 9.1. Appellate civil suits covered by principal acts, 1901– 1908 / 165