CBSE Class 8 Answered

The Dual form of government was set up by Robert Clive in Bengal. In 1765, the Company got the rights of the Diwan, viz., the rights to collect revenue and dispensation of civil justice for Bengal, Bihar and Orissa from the Mughal emperor. Clive was only interested in collecting revenues from the Bengal province. He was not interested in maintaining law and order. Hence, the Company obtained the rights to collect revenues and the Nawab of Bengal was entrusted with the responsibility of maintaining law and order. Since the responsibility of managing the Bengal was now in two hands, the system came to be known as the "Dual Government'. 

This system had its own disadvantages. The company had no responsibilities and enjoyed power. On the other hand, the Nawab was burdened with the responsibility of administration without the finances necessary for running it efficiently i.e., responsibility without power. Indian officials were appointed by the company to collect the revenue. The greed, corruption and oppression of these officials left the peasants in conditions of utter misery. The company was indifferent to the people's welfare.