• The early mechanism of the establishment of the Company’s rule in Bengal followed the administrative system under the Mughals.

• The Mughal provincial administration had two main heads – nizamat and diwani.

• Broadly speaking, nizamat meant administration of law and order, and criminal justice; while diwani was the revenue administration and civil justice.

• The provincial Subadar was in charge of nizamat (he was also called nazim) and the diwan was in charge of the revenue administration.

• After the Treaty of Allahabad, the English East India Company was made the Diwan of Bengal, but Lord Clive choose not to take over the administration of Bengal directly.

• This responsibility was left to the Nawab’s Naib Diwan and Naib Nazim Muhammad Raza Khan.

• As Naib Nazim, he was to represent the nawab and as naib diwan, he was to represent the Company.

• Thus, the Nawab had to handle the entire responsibility for the civil and criminal justice administration.

• However, he had to function through Muhammad Raza Khan, who was placed under the superintendence, direction and control of the British Company.

• As the Diwan, the Company directly collected its revenue, while through the right to nominate the Deputy Nazim, it controlled the nizamat or the police or judicial powers.

• This arrangement was known as ‘Dual or Double Government’.

• Under this system, the British had the power and resources without responsibility, while the Nawab had the responsibility of the administration, without power to discharge it.

• Thus, the Nawab had to take all responsibility for bad governance.

• The revenue remained the sole earning of the Company in lieu of a meager annual payment to the Mughal emperor.