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MODULE I

THE ACT OF SETTLEMENT 1781 A.D.

In the year 1777, the company directors complained about the working of courts in Calcutta
in England and demanded that the division of powers is required so that Court will not
interfere in the working of government in India.

The directors submitted that the court be restrained from controlling the diwani courts and
interfering with revenue matters and further that the boundaries of authority between the
council and the court be determined clearly.

Consequently in the year 1780 House of Commons appointed a select committee known as
the Touchet Committee to hold a thorough inquiry into the administration of justice in
Bengal, Bihar and Orissa.

The committees report led to the passing of new act, the act of settlement 1781. The purpose
of the act was 1)to remove the doubts and difficulties regarding the true intent and meaning
of certain clauses of the regulating act, 2)to support the lawful government of Bengal, Bihar
and Orissa so that revenue might be collected properly and 3)to safeguard the ancient laws
and customs of Hindus and Muslims.

House of commons knew that this law will empower the Executive and this is what they
wanted, because the Company just started their business and control of India ,in this case to
increase that control over India , it was necessary that Executive becomes strong and
powerful .

This act clearly said that Governor General and Council were not under the Supreme Court.
No person will be liable to court if he acts on the order of Governor General or council. The
immunity was not however to extend to an order of the Council applying to a British subject:
in such a case the SC was to maintain as full and complete jurisdiction as it earlier had.

It was again decided that Hindu and Muslim laws should be used for the communities.

Sadar Diwani Adalat got the status of court. - Revenue Matters, cases

the jurisdiction of the SC was curtailed in one aspect. The Supreme Court was not allowed to
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hear any cases against the misconduct of any government working or adalatas.

The Supreme Court was not allowed to hear the revenue cases and this way Government as
well as government employees got full freedom to rob the Indians.
Government Employees were also Indians.

This way Government became more powerful than the Courts. And Judiciary became
secondary.

After the act of 1781 Supreme Court worked more for the next 8 years.
But that time Supreme Court was so successful that it was established in the Bombay and
Madras.

SALIENT FEATURES OF THE ACT

 This Act was passed to remedy the mistake done by the Regulating Act of 1773.

 It was aimed to grant the relief to certain persons imprisoned at Calcutta under the
judgment of the Supreme Court and also to indemnify the governor general and
council and all officers who acted under their orders or authority.

 The Act was passed in order to explain and amend the provisions of the Regulating
Act.

 Also the inhabitants should be protected and maintained in the enjoyment of their
ancient laws, usages, rights and privileges.

MAIN PROVISIONS OF THE ACT.

 The Act made the Governor General and council immune from the jurisdiction of the
Supreme Court.

 But the Governor General and council had no immunity before the English courts.

 Revenue matters and the matters arising out of its collection were excluded from the
jurisdiction of the Supreme Court.

 Under section 17, the English law was not applicable to the natives. The Section 17
declared that the SC would have full power and authority to hear and determine all
actions and suits against the ‘inhabitants’ of Calcutta. Where the parties were of
different religions their cases were to be decided according to the laws and usages of
the defendants.

 The supreme court was empowered to have jurisdiction in actions for the wrongs to
trespass, and in civil cases where the parties had agreed in writing to submit their
cases to the supreme court.
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 The Supreme Court would not entertain cases against any person holding the judicial
office.

 The parliament, by this act, recognized civil and criminal provincial courts.

 The act provided that the Sadar Diwani adalat will be the court of appeal to hear
appeal from the county courts in civil cases.it was recognized as the court of record.
Sadar Diwani adalat was presided over by the Governor-General and council.it was
also empowered to hear and decide cases of revenue and undue force in the collection
of revenue. The status of sadar diwani adalat became co-equal with that of the SC as
both were backed by parliamentary legislation and from both appeals went to the
Privy Council.

 The Act also authorized the Governor-General and council to frame regulations for
the provincial councils and the courts.

 The act recognized the right of the family heads to inflict punishments on the family
members.

 The act provided the release of all the prisoners who were arrested in Patna case. They
were allowed to file an appeal in Privy Council against the Supreme Court judgment.

DEFECTS OF THE ACT.

 The act favoured the executive i.e. the governor-general and council against the
Supreme Court. They refused to allow the Supreme Court to introduce the English
principles of independence of the judiciary and the rule of law in India.

 The relationship between the Indian territories and the British crown was still not
quite clear.

 The term British subjects were still not quite clear.

 There was no reply in the act whether the provincial courts were to have a concurrent
jurisdiction with the supreme court or an exclusive one.
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PITTS INDIA ACT 1784 A.D.

INTRODUCTION

The Pitts India Act of 1784 established the system of dual control of India by the government
of Great Britain and the British East India Company.

The first major regulation in this act was the relationship of the company to the British
government. With the Pitts India Act of 1784, East India Company's political functions were
differentiated from its commercial activities.

 In order to strength the power of the company’s government in England, the act
introduced vital changes by setting up a board of control and recognizing the court of
directors.

 So from now onwards the governor general had two masters to obey, the court of
directors and the board of control, and he could afford to disobey neither.

 Out of this conflict of authority emerged the theory of man on the spot and it became
thence forward the central theme of the British system of administration in India.

PROVISIONS OF THE ACT.

 Board of control.

 Authority of the board.

 Court of proprietors sacked of its power.

 Powers and privileges of the board of directors.

 Company’s central government.

 British possessions.

 Government of presidencies.

 Measures for checking corruption.

 Dual government.

BOARD OF CONTROL

 In political matters, the company which was till now working as somewhat sovereign
was made directly subordinate to the British government.
 To enable this, a Board of Commissioners was created, which was called Board of
Control.
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 6 people viz. the Chancellor of the Exchequer, the Secretary of State, and four Privy
Councilors, nominated by the King were the members of this Board of Control.
 The Secretary of the State was entitled as the President of the Board of Control. This
 Board of control was empowered to control all matters of civil or military government
or revenues.
 The board was given full access to the company's records. It had the powers to send
Governors to India and full authority to alter them.

AUTHORITY OF THE BOARD

 The board was authorized to superintend and control all the revenue and civil
activities and the military forces held by the British in the east indies.

 The Pitts India Act 1734 actually provided for a joint government of the company and
 British crown in India. So now, the fate of India People would decide the company
and the British Government (indirectly).
 The Company was to be represented by the Court of Directors and the Crown was
 represented by the Board of Control.
 Impact on Governor General-in Council
 The Governor General's council was now reduced to 3 members, one of whom was to
be the commander-in-chief of the King's army in India.
 The Governor General was given the right of casting vote, in case the members
present in a meeting of the council shall any time be equally divided in opinion.

 The Governors of Presidencies of Bombay and Madras were deprived of their

 independent powers and Calcutta was given greater powers in matters of war,
revenue, and diplomacy, thus Calcutta becoming in effect, the capital of Company
possessions in India.
 The Governor General Council was now under indirect control of the British
Government through the Board of Control. There was also a secret committee of the 3
directors, which had to transmit the orders of the Board to India. This Secret
Committee was to work as a link between the Board of control and the Court of
Directors.

COURT OF PROPRIETORS SACKED OF ITS POWER

 They were completely deprived of its power to counter the orders and resolution of
the directors, which had secured due approval of the board of control.

POWER AND PRIVILEGES OF THE BOARD

 The court of directors was allowed to retain its full powers in the appointments,
reduction and retrenchment of all the civil and military servants of the company.
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COMPANY’S CENTRAL GOVERNMENT

 The central government of the company in india consisted of three other members
besides the governor-general.

 Out of the three members ,one was to be the commannder –in-chief of the british
forces in india.

 A casting vote was also given to the governor-general .

 In the appointment of the governor-general, the directors were required to secure prior
approval of the crown.

BRITISH POSSESSIONS

 All the company’s possessions in india were, for the first time, stated as the ‘british
possessions’.

GOVERNMENT OF PRESIDENCIES

 The government of the presidencies was to consist of a governor and council of three
members.

 One of these would be the commander-in-chief of the company.

 The governor and councillors were appointed by the court of directors

MEASURES OF CHECKING CORRUPTION

 The act made provisions to check the presents and to check corruption amongst the
servants of the company holding high posts.

 Receiving presents would be considered to be extortion and company officers on their

retirement were to declare on oath the fortunes they possessed.

 A special court was to set up to try these offences.

DUAL GOVERNMENT

 It was the most important feature of the act. Under this, the control of the purely
commercial functions was placed entirely into the hands of the director, while for the
control of the company’s political functions; the responsibility was given to the board
of control.