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In a bid to rectify the defects of the Regulating Act of 1773, the British Parliament passed the Amending Act of 1781, also known as the Act of Settlement. One of the biggest problems created by the Regulating Act was the tussle between the Supreme Court and the Governor-General in Council. This was done by curtailing several powers of the Supreme Court in favour of the Governor-General in Council. 1. Under the Regulating Act 1773, the servants of the company came within the jurisdiction of the Supreme Court and brought them under the dual control of Governor-General in Council and Supreme Court. The 1781 amendment exempted the actions of the public servants in the company in their official capacity. 2. Revenue collectors including Zamindars and judicial officers of the company courts were also exempted from Jurisdiction of the SC. 3. The court’s geographic jurisdiction became limited to only Calcutta. The amending act provided that appeals were to be taken from the provincial courts to the Governor-General in council. Thus Amending Act of 1781 was the first attempt in India towards the separation of the executive from the judiciary by defining the respective areas of jurisdiction.

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