The Charter of 1683 gave the Company full power to make peace and war, and also provided for establishing a Court of Judicature to be held at such place or places as the Company might direct. In 1726 the Crown by Letters Patent established Mayor's courts on the English pattern at Madras, Bombay and Fort William (Calcutta), each consisting of a Mayor and nine Aldermen who had the power to hear all civil suits, actions and pleas between party and party. These were declared to be courts of Record from whose decisions an appeal lay to the Governor and Council in important cases a further appeal to the Privy Council in the United Kingdom. The Governor and five seniors of the Council were required to hold quarterly sessions for the trial of all kinds of offences other than treason. In 1753 by Letters Patent, Courts of Request (the predecessors of small causes courts) were established at each of the three presidency towns for the determination of suits in which the amount involved did not exceed Rs 20. Their jurisdiction was restricted only to the Europeans in express terms suits between Indians were not to be determined by the Mayor's courts unless by the consent of the parties. This was a self-imposed limitation which showed an intention on the part of the British Crown not to claim rights to territorial sovereignty over any portion of India.
The year 1765 marked the commencement of the East India Company's territorial sovereignty. Clive succeeded in obtaining from Emperor Shah Alam the grant of the Diwani or fiscal administration of Bengal, Bihar and Orissa. The Nizamat or criminal jurisdiction continued to remain with the Nawab at Murshidabad while the Company was to collect the revenue, maintain the army, and be responsible for the administration of civil justice. Not being familiar with the state of country in the interior,the Company did not interfere with the management of civil institutions till 1722, except by the appointment of a few European officials, with superior authority, to superintend the revenue and judicial administration. At this time Mohamedan criminal law was in force throughout the courts. The principal criminal courts were of the Nawab and his deputy, and of the Faujdars. In the province the zamindars and farmers were responsible for public safety and exercised civil and criminal jurisdiction over their respective districts. Their authority was supreme except in capital cases which were to be reported to the Nizam.
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