Q1. The primary objective of the Act of Settlement, 1781, was to rectify which critical flaw in the judicial structure established by the Regulating Act of 1773?
- (a) The lack of a centralized revenue administration system in Bengal Presidency
- (b) The ambiguous jurisdiction of the Supreme Court over the Company's servants and native population
- (c) The absence of appellate jurisdiction for the Sadar Diwani Adalat
- (d) The exclusion of Indians from the Executive Council of the Governor-General
Answer & solution
Answer: (b) The ambiguous jurisdiction of the Supreme Court over the Company's servants and native population
The Regulating Act of 1773 created the Supreme Court at Calcutta but never drew a line between the Court and the Governor-General-in-Council.
The Court began trying Company officers, revenue collectors and Indians under English law, and the two clashed openly.
The Act of Settlement, 1781 was passed to settle exactly that boundary.
Revision note — Act of Settlement, 1781
• Also called the Amending Act of 1781; it followed the clashes exposed by the Nand Kumar case (1775), the Patna case (1777–79) and the Cossijurah case (1779–80).
• The Governor-General and Council were exempted from the Supreme Court's jurisdiction for acts done in their official capacity.
• Revenue matters and revenue officers were placed outside the Supreme Court's jurisdiction.
• In civil suits the Court was to apply the personal law of the parties — Hindu law for Hindus, Muslim law for Muslims.
• The Sadar Diwani Adalat was recognised as the court of appeal from the provincial courts, with a further appeal to the King-in-Council.
• The Governor-General-in-Council was empowered to frame regulations for the provincial courts and councils.
Do not mix these up
• Regulating Act, 1773 vs Act of Settlement, 1781 — the 1773 Act created the Supreme Court at Calcutta (it opened in 1774); the 1781 Act curtailed it.
• Act of Settlement, 1781 vs Pitt's India Act, 1784 — 1781 was about the courts; 1784 created the Board of Control and the system of dual government.
Also asked from this topic: the Act that set up the Supreme Court at Calcutta (Regulating Act, 1773); the size of the council of 1773 (four members); the body created in 1784 (Board of Control).