Introduction

The Judicial Plan of 1781 was a significant reform introduced during the British
colonial administration in India. It was implemented under the governance of
Warren Hastings, the first Governor-General of Bengal. This plan was
formulated to rectify the judicial issues and conflicts that arose due to the
earlier Judicial Plan of 1772. It aimed to bring clarity and division between
revenue and judicial powers and was a cornerstone in shaping the British
judicial structure in India.

Amending Act of 1781: Reshaping Judiciary and

Governance in Colonial India
In the context of British India, the Act of Settlement 1781 is noteworthy. It came
into effect on July 5, 1781, primarily as a response to the shortcomings
observed in the Regulating Act of 1773.

The central objective of this legislative move was to clarify the respective roles
and functions of two key entities: the Supreme Court and the Governor-
General in Council. It is often referred to as the “Amending Act of 1781” or the
“Declaratory Act of 1781.”

This act had a significant impact on the legal system in British India. It sought
to address complaints and issues related to the Supreme Court’s functioning
and rectify the deficiencies in the Regulating Act concerning judicial oversight
of administrative matters. This adjustment was crucial for establishing a more
efficient and effective legal framework. Understanding these historical
legislative developments can provide valuable insights into the governance of
colonial India during this period.

Amending Act of 1781: Resolving Conflict and Establishing

Governance in Colonial Bengal
• Conflict Between Supreme Court and Supreme Council in Bengal: In the
period from 1779 to 1780, a significant conflict emerged between the Supreme
Court and the Supreme Council in Bengal.
o This dispute led the Supreme Council to take legal action against what
it considered the unlawful actions of the Bengal Supreme Court.
 o Many individuals, including zamindars, company employees, and others,
also raised similar concerns and filed petitions.

• Touchet Committee and the Act of Settlement (1781): In response to these

escalating tensions and the need for resolution, the British Parliament took action.
o They appointed a Committee, known as the “Touchet Committee,” to
thoroughly investigate the situation and provide a report in a timely
manner.
o Following the Committee’s findings, Parliament acted swiftly and, in 1781,
passed a crucial piece of legislation known as the Act of Settlement.

• The Act of Settlement (1781): This Act was aimed at resolving the conflicts and
establishing a clear framework for the functioning of these key institutions in
Bengal.
o It marked a significant moment in the history of British governance in India
and had far-reaching implications.

Factors of Amending Act of 1781: Dual Government,

Famine, Financial Crisis, and Trading Issues in Colonial
India
Several factors necessitated the enactment of this significant legislation,
marking the British government’s direct involvement in the East India
Company’s affairs.

• Dual Government Issues: Initially, the Indian administration was structured as a

dual government, with Robert Clive’s vision at the helm. This arrangement caused
considerable problems for the local population.
o The East India Company held Diwani rights in Bengal, while the Nawab
retained Nizamat privileges, which included judicial and policing authority.
• Exploitation by Nawabs and the Company: Behind the scenes, the Company
exercised control over Nizam’s rights through the Nawab.
o This dual system resulted in the exploitation of the Indian people by both
the Nawabs and the Company.
• Famine Tragedy: A devastating famine struck Bengal, leading to a significant loss
of life and exacerbating the suffering of the populace.
• Financial Crisis: By 1773, the East India Company faced severe financial
difficulties, prompting the company to seek a substantial loan of one million pounds
from the British Government in 1772.
• Abuse of Trading Powers: Originally granted trading powers by the British
Parliament, the East India Company gradually expanded its territorial control and
began to act as a governing body rather than just a trading entity.
 o This transformation raised concerns in the British Parliament, leading to a
realization that the Company needed to be reined in to prevent the abuse
of political power under the guise of trading rights.
• Lack of Centralized Governance: At the time, India was divided into three
presidencies: Bengal, Madras, and Bombay.
o However, each presidency operated independently, lacking a centralized
government.

• Imperatives Driving the Act of Settlement: These multifaceted issues compelled

the British government to intervene and take action, ultimately resulting in the Act
of Settlement.
o This legislative move aimed to address the complex challenges and
transform the governance structure in colonial India.

Features of the Amending Act of 1781 in British India

This marked a pivotal moment when the British Parliament directly intervened
in the administration of the East India Company. The significant changes
introduced through the Regulating Act of 1773 are detailed below:

• Introduction of the Governor-General of Bengal: The office of the Governor of

Bengal underwent a transformation and was renamed the Governor of the
Presidency of Fort William, known as the Governor-General of Bengal.
o Lord Warren Hastings became the first individual to hold this prestigious
position.
• Creation of an Executive Council: A crucial development was the establishment
of a four-member Executive Council, designed to provide support and assistance
to the Governor-General in his duties.
• Subordination of Bombay and Madras Governors: The Governors of the
Bombay and Madras presidencies were placed under the authority of the
Governor-General of Bengal.
o This effectively made the Governor-General the highest-ranking
official in these regions.

• Establishment of the Supreme Court at Fort William: In 1774, the Supreme

Court of Judicature at Fort William in Calcutta was founded.
o This court consisted of one Chief Justice and three additional judges and
had jurisdiction over all areas within the Bombay, Madras, and Bengal
Presidencies.
o It functioned as a Court of Record with the power to adjudicate civil and
criminal cases (though primarily involving British individuals, not indigenous
people), as well as admiralty matters.
o The judges for this court were expected to be dispatched from England,
and Sir Elijah Impey served as its inaugural Chief Justice.
Objectives and Impact of the Amending Act of 1781 in
Colonial India
The primary objectives behind the implementation of the Regulating Act of
1773 can be summarized as follows:

• Providing Compensation: The Act aimed to provide compensation to the

Governor-General and the Officers of the Council for their actions in obstructing
the proceedings of the Supreme Court.
• Resolving Ambiguities: It sought to address the ambiguities and challenges
arising from the Regulating Act and the Charter, which had created a division
between the government and the courts.
• Ensuring Revenue Collection: The Act aimed to support the governments of
Bengal, Bihar, and Orissa in the secure and efficient collection of revenue at any
given time.
• Protecting Indigenous Rights: Additionally, it aimed to safeguard the rights,
customs, and privileges of indigenous peoples.
Drawbacks of the Amending Act of 1773 in British India
While considered a significant moment in Indian legal history, the Regulating
Act of 1773 had notable shortcomings that left critical issues unaddressed.
Here are the key flaws of the Act:

• Governor-General’s Limited Authority: The Act created a paradox where the

Governor-General lacked veto authority and was accountable to the Directors for
all actions related to Indian administration.
o However, the Governor-General’s independent decision-making power was
constrained by the council’s majority decisions, essentially making the
Governor-General a mere figurehead.
• Dominance of Governors: Despite the nominal subordination of Governors to the
Governor-General, the Governors and their subordinates wielded substantial
power, leading to widespread corruption and a weakening of governance at lower
levels.
• Confusion Over Supreme Court’s Jurisdiction: The Act failed to clarify the
powers and jurisdiction of the newly established Supreme Court, resulting in
misunderstandings and conflicts between the court and the Governor’s
jurisdictions.
• Neglect of Indian Natives’ Concerns: The Act overlooked the concerns of the
Indian natives, who were the real victims of the shortcomings in the legal system.
These flaws highlight the complexities and challenges that persisted within the
Indian legal and administrative framework despite the Act’s intentions for
reform.

Significance of the Amending Act of 1781 in British India

• Overview: The Amending Act of 1781, also referred to as the Act of Settlement
1781, was a significant piece of legislation passed by the British Parliament on July
5, 1781.
o Its primary purpose was to address and rectify the shortcomings and
defects found in the Regulating Act of 1773, which had established the
framework for British governance in India.
• Judicial Reforms: The Act of Settlement 1781 aimed to make crucial
amendments to the existing legal and administrative structure, particularly
concerning the judiciary.
o It sought to enhance the functionality and fairness of the legal system in
British India by establishing provisions for addressing grievances and
complaints against the Supreme Court, thereby ensuring a more equitable
and effective judicial process.
o This legislative measure played a pivotal role in shaping the legal
and administrative landscape of British India during that period.

Conclusion
• The Amending Act of 1781, also known as the Act of Settlement 1781, played
a pivotal role in reshaping British governance in colonial India.
• It addressed conflicts between the Supreme Court and the Supreme Council,
establishing clearer governance frameworks and enhancing judicial processes.
• This legislative move marked a significant step towards
improving administrative efficiency and fairness in colonial India.

References
1. V.D. Kulshreshtha, Landmarks in Indian Legal and Constitutional
History
2. A.B. Keith, Constitutional History of India
3. Google website: The law journey, PWOnlyIAS.com