Adoption of ‘sunset law’ by the English East India Company meant:
(1) High revenue collection.
(2) If there was default in revenue payments by sunset of the specified date, the zamindari was liable to be auctioned.
(3) Rise of a class of Jotedars.
(4) Emergence of the collectorate.

2

The adoption of the 'sunset law' by the English East India Company meant that if there was a default in revenue payments by sunset of the specified date, the zamindari (landholding) was liable to be auctioned. Therefore, option (2) "If there was default in revenue payments by sunset of the specified date, the zamindari was liable to be auctioned" is the correct answer. This was a measure taken by the East India Company to ensure prompt revenue collection and control over land revenue administration during the colonial period in India.