The administration of the Company was different from that of Indian rulers. Before the Britishers came to the India, the Indian territories were divided into Kingdoms ruled by different rulers.

i) The Company made a proper system of administration by dividing the territory into presidencies; the supreme head of the administration was the Governor General. But Indian ruler did not have proper system of administration.

ii) From 1773, each district was to have two courts—a criminal court (faujdari Adalat) and a civil court (Diwani Adalat). Muslims and Hindu Pandits interpreted Indian laws for the European district collectors who presided over civil courts. The criminal courts were still under a qazi and mufti but under the supervision of the collectors.

iii) Maulvis and Hindu pundits interpreted the Indian law for the European district collector who presided over the civil court.

iv) The collector was the principal figure and his main job was to collect revenue and taxes and to maintain law and order.

v) Under the Regulating Act of 1773, A new Supreme Court was established. A court of appeal—the Sadar Nizamat Adalat was also setup at Calcutta.