Act of Settlement of 1781

Act of Settlement of 1781
The Act of Settlement 1781 was passed by the British Parliament on 5th July 1781 to remove the defects of
Regulating Act of 1773. The key provision of this Act was to demarcate the relations between the Supreme Court and
the Governor General in Council. This Act is popularly known as “ The Amending Act of 1781” or “Declaratory Act of
1781”.
The basic and fundamental aim of this Act was to establish a new system of Courts to remove the grievances against
the Supreme Court and the failure of the Regulating Act’s aim of controlling administration through Judiciary.
Leading factors
1. Regulating Act 1773 brought great level of changes in regulating company’s affairs and judicial
administration but there was major defect in express jurisdiction of the administrative bodies and subject on which
they adjudicated.
2. There were serious issues with the administration of the Warren Hastings were there. The relevant
examples of such issues are Patna case, Cossijurah Case and particularly the Nand Kumar case and his hanging. These
all issues let to a lot of criticisms of administration of Warren Hastings.
3. There was a big tussle between the Supreme Court and Governor-General in Council which disturbed
the balance of administration to a great extent.
4. There was interference in the personal laws of the communities which had agitated the natives
when British where applied on natives. Like on Raja Nand Kumar case where he was hanged for forgery according to
British law whereas Hindu and Muslim both doesn’t have capital punishment for forgery.
In the year 1777, a complaint was made by the directors of the company against the Supreme Court as for them it
was difficult to run the administration. To address this complaint, the House of Commons, appointed a committee
known as Touchet Committee to a do an inquiry about the administration of Bengal, Bihar, and Odisha.
Report of this committee led to the enactment of Act of Settlement 1781.
The main objectives of the enactment of this Act were :
1. To remove ambiguity regarding the few provisions of the Regulating Act and Charter 1774 which had created the
division between the court and the government.
2. To support the lawful government of Bengal, Bihar, and Orissa, so that revenue could be collected smoothly.
3. To protect the Rights , Usages , and Privileges of the Indigenous people and their personal laws.
4. To make the clear distinction between the Powers of Supreme Court and Governor General Councils.
5. To create a efficient mechanism for smooth functioning of administrative system.
Key Provisions (features) of the Act
Defining the powers of the Supreme Court
◦ The servants of the company which earlier came within the jurisdiction of the Supreme Court were
now exempted from the jurisdiction of the Supreme Court.
◦ Now Company Officers and Zamindar were immune from the jurisdiction of the SC.
◦ Person having their land or who came under the employment in the province of Bengal, Bihar and
Orissa were free from the control of Supreme Court.
◦ By the enactment of this Act, the court’s geographical jurisdiction became limited to only Calcutta.
And made provincial council independent in decision of civil and criminal cases.
Change in Appellate Jurisdiction
The Appellate jurisdiction shifted in the hands of the Governor-General and Council. Now, the appeals went from
Provincial Courts to the Governor-General in council not the Supreme Court.
No jurisdiction on Revenue matters
The Jurisdiction of the “Supreme Court” was precisely defined in this Act. Section 9 of the Act of Settlement provided
that the person who had any interest or control over lands and rents into the provinces of Bengal , Bihar and Orissa
were immune from the Jurisdiction of the Supreme Court.
Superiority of the personal laws
This act asserted that Mohammedan law should be applied on the Mohammedan cases and similarly, the Hindu law
must be applied to Hindu cases.
This Act specified that the Civil and Religious Usages of the Natives and their Ancient Rites must be Protected ,
Preserved and Safeguarded.
Correcting the mistake done in all three cases where British laws where applied on natives.
Impacts of the Act of the Settlement
1. This Act completely favoured the Council and gave them a Superior authority over the Judiciary.
2. The Executives were strongly Strengthened to ensure that the Britishers were able to maintain their
hold on the Indian Empire.
3. It was the first attempt to separate the executive from the judiciary by defining the respective areas
of jurisdiction.
Still act failed to give a vibrant impact and to remove all the flaws of the Regulating Act of 1773 therefore to remove
all defect Pitts India Act of 1784 was enacted.
Conclusion
These to enactment brought many great changes to the system of administration and justice. It can also be
concluded that the Regulating Act of 1773 laid the foundation of the Central Administration and Parliamentary
Control and 1st instance though limited of separation of power between judiciary and executive. But, there were
also some drawbacks to both the acts which was removed by bringing subsequent charters.

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Act of Settlement of 1781

Report of this committee led to the enactment of Act of Settlement 1781.

The main objectives of the enactment of this Act were :

5. To create a efficient mechanism for smooth functioning of administrative system.

Key Provisions (features) of the Act

Defining the powers of the Supreme Court

Change in Appellate Jurisdiction

No jurisdiction on Revenue matters

Superiority of the personal laws

Impacts of the Act of the Settlement

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