Q1. The Act of Settlement, 1781, was enacted to correct what major flaw of the Regulating Act?
- (a) Lack of provision for a civil code
- (b) Ambiguity regarding jurisdiction of the Supreme Court
- (c) Absence of an executive authority
- (d) Lack of control over military spending
Answer & solution
Answer: (b) Ambiguity regarding jurisdiction of the Supreme Court
The Regulating Act of 1773 set up the Supreme Court at Calcutta (1774) without defining its jurisdiction, which produced constant clashes with the Governor-General in Council (the Nand Kumar case 1775, the Patna case, the Cossijurah case 1779–80).
The Act of Settlement, 1781 (also called the Amending Act or Declaratory Act) was passed to remove these defects.
Revision note — The Regulating Act 1773 and its correction in 1781
• Regulating Act 1773 — the first step of parliamentary control over the East India Company; the Governor of Bengal became Governor-General of Bengal (Warren Hastings) with a council of four.
• It created a Supreme Court at Fort William, Calcutta (1774) with a Chief Justice (Sir Elijah Impey) and three judges, and banned private trade and the taking of presents by Company servants.
• Act of Settlement 1781 — exempted the Governor-General and Council from the Supreme Court's jurisdiction for acts done in their official capacity; revenue matters and Company servants acting officially were also excluded.
• It directed the Supreme Court to apply the personal law of Indians — Hindu law for Hindus, Muslim law for Muslims — in cases involving them.
• Appeals from the provincial courts were to go to the Governor-General in Council, not to the Supreme Court, and the Council was empowered to frame regulations for those courts.
• The next step was Pitt's India Act 1784, which set up the Board of Control and the system of dual government.
Do not mix these up
• Regulating Act 1773 vs Act of Settlement 1781 — 1773 created the Supreme Court; 1781 limited its jurisdiction.
• Act of Settlement 1781 (India) vs Act of Settlement 1701 (England) — the English Act of 1701 settled the succession to the British throne; it has nothing to do with the Company.
Also asked from this topic: what the Regulating Act made the Governor of Bengal (Governor-General of Bengal, council of four); the law that set up the Supreme Court at Calcutta in 1774 (Regulating Act of 1773).