Page 16 - DHIS204_DHIS205_INDIAN_FREEDOM_STRUGGLE_HINDI

Unit 1: British Expansion

In the hey days of the Mughal Empire the two principal officers of the Central government in a Notes
province were the Subahdar and the Diwan. The Subahdar looked after the Nizamat functions, i.e.,
military defence, police and administration of criminal justice, while the Diwan was the chief financial
officer and in charge of revenue affairs, besides being responsible for the administration of civil
justice in the province. The two officers served as a check on each other and were directly responsible
to the Central government. After the death of Aurangzeb the Mughal central authority weakened
and Murshid Kuli Khan, the Nawab of Bengal, exercised both the Nizamat and Diwani functions.
The firman issued by Emperor Shah Alam an 12 August 1765 granted the Diwani functions to the
Company in return for an annual payment of Rs. 26 lakhs to the Emperor and providing for the
expenses of the Nizamat (fixed at Rs. 53 lakhs). Earlier in February 1765, Najm-ud-Daula was allowed
to succeed as Nawab of Bengal (after the death of his father Mir Jaffar) on the condition that he
practically surrendered the Nizamat functions, i.e., the military defence and foreign affairs of the
province entirely into the hands of the Company and the civil administration to the care of a Deputy
Subahdar to be named by the Company and not removable without their consent. Thus, the Company
acquired the Diwani functions from the Emperor and the Nizamat functions from the Subahdar of
Bengal.
At this time the Company was neither willing nor able to undertake the direct collection of revenue.
For the exercise of Diwani functions, the Company appointed two Deputy Diwans, Mohammad Reza
Khan for Bengal and Raja Shitab Roy for Bihar. Mohammad Reza Khan also acted as Deputy Nazim.
Thus the whole administration, Nizamat as well as Diwani, was exercised through Indian agency,
though the actual power rested with the Company. This system of government came to be remembered
as Dual System or Dyarchy, i.e., rule of two, the Company and the Nawab. In actual practice the Dual
System proved a sham, for the East India Company exercised all political power and used the Indian
agency merely as an instrument for their purposes.
Clive’s Justification of the Dual System: Clive was fully conscious of the fact that all power had
passed into the hands of the Company and nothing was left to the Nawab except the name and
shadow of authority. “This name”, wrote Clive to the Select Committee, “this shadow, it is
indispensably necessary we should seem to venerate”. Clive gave his reasons for the new set up:
Firstly, open assumption of authority would have brought the Company in its true colours and might
have achieved the miracle of uniting some Indian princes against the Company and thus embroil
them in war;
Secondly, it was very doubtful whether the French, the Dutch or the Danes would readily acknowledge
the Company’s subahship and pay into the hands of their servants the duties on trade or the quit-
rents of those districts which they had long possessed by virtue of Imperial firmans or grants from
former Nawabs of Bengal;
Thirdly, open assumption of political power could create complications in England’s diplomatic
relations with France, Holland, Portugal or Sweden and might urge those powers to join in an anti-
British front the like of which Europe saw later during 1778-80 (the American War of Independence);
Fourthly, the Company did not have at its disposal trained personnel to take over and run effectively
the work of administration. Clive wrote to the Court of Directors that even “three times the present
number of civil servants would be insufficient” for that purpose. The few servants of the Company
that could be available for the task of administration were ignorant of Indian practices, languages
and customs;
Fifthly, the Court of Directors were opposed to the acquisition of the territories for that might interfere
with their trade and profits. The Directors were more interested in commerce and finance than
territorial acquisitions; and
Lastly, Clive well understood that open assumption of political power of Bengal might move the
British Parliament into interfering with the affairs of the Company.
Evil Effects of the Dual System: The scheme of government devised by Clive proved ineffective and
unworkable and created anarchy and confusion in Bengal. It failed from the very moment of its
inception.

LOVELY PROFESSIONAL UNIVERSITY 11