In April 1775 Pigot was appointed governor and commander-in-chief of Madras in the place of Alexander Wynch. He resumed office at Fort St. George on 11 Dec. 1775, and soon found himself at variance with some of his council. In accordance with the instructions of the directors he proceeded to Tanjore, where he issued a proclamation on 11 April 1776 announcing the restoration of the raja, whose territory had been seized and transferred to the nabob of Arcot in spite of the treaty which had been made during Pigot's previous tenure of office. Upon Pigot's return from Tanjore the differences in the council became more accentuated. Paul Benfield [q. v.] had already asserted that he held assignments on the revenues of Tanjore for sums of vast amount lent by him to the nabob of Arcot, as well as assignments on the growing crops in Tanjore for large sums lent by him to other persons. He now pleaded that his interests ought not to be affected by the reinstatement of the raja, and demanded the assistance of the council in recovering his property. Pigot refused to admit the validity of these exorbitant claims, but his opinion was disregarded by the majority of the council, and his customary right to precedence in the conduct of business was denied. The final struggle between the governor and his council was on a comparatively small point—whether his nominee, Mr. Russell, or Colonel Stuart, the nominee of the majority, should have the opportunity of placing the administration of Tanjore in the hands of the raja. In spite of Pigot's refusal to allow the question of Colonel Stuart's instructions to be discussed by the council, the majority gave their approval to them, and agreed to a draft letter addressed to the officer at Tanjore, directing him to deliver over the command to Colonel Stuart. Pigot thereupon declined to sign either the instructions or the letter, and declared that without his signature the documents could have no legal effect. At a meeting of the council on 22 Aug. 1776 a resolution was carried by the majority denying that the concurrence of the governor was necessary to constitute an act of government. It was also determined that, as Pigot would not sign either of the documents, a letter should be written to the secretary authorising him to sign them in the name of the council. When this letter had been signed by George Stratton and Henry Brooke, Pigot snatched it away and formally charged them with an act subversive of the authority of the government. By the standing orders of the company no member against whom a charge was preferred was allowed to deliberate or vote on any question relating to the charge. Through this ingenious manœuvre Pigot obtained a majority in the council by his own casting vote, and the two offending members were subsequently suspended. On the 23rd the refractory members, instead of attending the council meeting, sent a notary public with a protest in which they denounced Pigot's action on the previous day, and declared themselves to be the ‘only legal representatives of the Honourable Company under this presidency.’ This protest was also sent by them to the commanders of the king's troops, and to all persons holding any authority in Madras. Enraged at this insult, Pigot summoned a second council meeting on the same day, at which Messrs. Floyer, Palmer, Jerdan, and Mackay, who had joined Messrs. Stratton and Brooke and the commanding officer, Sir Robert Fletcher, in signing the protest, were suspended, and orders were at the same time given for the arrest of Sir Robert Fletcher. On the following day Pigot was arrested by Colonel Stuart and conveyed to St. Thomas's Mount, some nine miles from Madras, where he was left in an officer's house under the charge of a battery of artillery. The refractory members, under whose orders Pigot's arrest had been made, immediately assumed the powers of the executive government, and suspended all their colleagues who had voted with the governor. Though the government of Bengal possessed a controlling authority over the other presidencies, it declined to interfere.
In England the news of these proceedings excited much discussion. At a general court of the proprietors a resolution that the directors should take effectual measures for restoring Lord Pigot, and for inquiring into the conduct of those who had imprisoned him, was carried on 31 March 1777 by 382 votes to 140. The feeling in Pigot's favour was much less strong in the court of directors, where, on 11 April following, a series of resolutions in favour of Pigot's restoration, but declaring that his conduct in several instances appeared to be reprehensible, was carried by the decision of the lot, the numbers on each side being equal. At a subsequent meeting of the directors, after the annual change in the court had taken place, it was resolved that the powers assumed by Lord Pigot were ‘neither known in the constitution of the Company nor authorised by charter, nor warranted by any orders or instructions of the Court of Directors.’ Pigot's friends, however, successfully resisted the passing of a resolution declaring the exclusion of Messrs. Stratton and Brooke from the