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Reforms under Warren Hastings (1772-1785)

District Diwani Adalats were established in districts to try civil disputes. These adalats were placed under the collector and had Hindu law applicable for Hindus and the Muslim law for Muslims. The appeal from District Diwani Adalats lay to the Sadar Diwani Adalat which functioned under a president and two members of the Supreme Council.

District Fauzdari Adalats were set up to try criminal disputes and were placed under an Indian officer assisted by qazis and muftis. These adalats also were under the general supervision of the collector. Muslim law was administered in Fauzdari Adalats. The approval for capital punishment and for acquisition of property lay to the Sadar Nizamat Adalat at Murshidabad which was headed by a deputy nizam (an Indian Muslim) assisted by chief qazi and chief mufti.

Under the Regulating Act of 1773, a Supreme Court was established at Calcutta which was competent to try all British subjects within Calcutta and the subordinate factories, including Indians and Europeans. It had original and appellate jurisdictions. Often, the jurisdiction of the Supreme Court clashed with that of other courts.