What is the Act of Settlement 1781?

By Shivank Goel|Updated : November 8th, 2022

The Regulatory Act of 1773 was amended with the introduction of the Act of Settlement, of 1781. The British Parliament passed the Amending Act 1781, later known as the Act of Settlement, 1781, with the intention of amending and correcting the mistakes in the Regulatory Act of 1773. The main reason for passing this Act was to establish a new court system that would deal with complaints against the Supreme Court.

Act of Settlement 1781 Features

On July 5, 1781, the British Parliament passed the Act of Settlement to amend and correct the Regulatory Act of 1773. Today, it is also referred to as the "Declaratory Act of 1781." The relationship between the Supreme Court and the Governor-General of the Council was primarily described. The following factors were taken into account when passing the law:

  • To look into the matters pertaining to the complaints directed towards the Supreme Court and to also oversee the Regulatory Act’s failure to keep a check over the administration through the judiciary.
  • The financial crisis faced by the East India Company in 1773 was one of the major reasons for the Act's enactment.
  • The terrible famine that struck the people of Bengal, which resulted in their hardships, was also one of the reasons.
  • The exploitation of people by both the Nawabs and the East India Company.

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FAQs on Act of Settlement 1781

  • The Act of Settlement was passed on 5th July 1781 in order to make changes and corrections to the Regulatory Act of 1773. It is also known as the "Declaratory Act of 1781" in modern times.

  • The main aim behind enacting the Act of Settlement was to create a different court system and look into the grievances made against the Supreme Court.

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