During the British rule in India, the East India Company was responsible for the administration of civil justice. They started designing the judicial system at the presidency towns and established various courts. As per the judicial plan of 1772, Mofussil Diwani Adalat, Small Cause Adalats, Mofussil Fozdari Adalat, Sadar Adalats consisting of Sadar Diwani Adalats and Sadar Nizamat Adalat were established.

The Sadar Diwani Adalat were above the Mofussil Adalats, they consisted of the Governor and members of the Council and was to hear appeals from the Mofussil Diwani Adalats  in cases of over five hundred rupees. The first sitting of the Sadar Diwani Adalat was held on 17 March 1773. A fee of 5% was fixed on the petition of appeal. Appeals were to be filed within two months from the date of the decree given by the Mofussil Adalat.

With the introduction of the Judicial Scheme of 1793, the Sadar Diwani Adalat became the highest court in the judicial hierarchy. The Governor General and members of Council sat as Judges. It was to hear appeals from the Courts of Appeal in all cases involving a subject matter exceeding one thousand rupees. Its decisions were to be final, except that a further appeal could be taken to the King-in-Council in cases of a value of 5000 Great Britain Pounds or more. The Sadar Diwani Adalat was given functions of supervision and inspection over the lower adalats.

The British Parliament enacted the Indian High Courts Act on 6 August 1861 to establish the High Courts in the Presidency towns.  On the establishment of the High Courts in 1862 the Sadar Diwani Adalats and the Sadar Nizamat Adalat in the Presidency towns were abolished. The records and documents of those courts became the records of the High Court of those Presidency towns.

Source : Outlines of Indian Legal History, By: M.P.Jain, Pub. N.M.Tripathi, Bombay, Edn.1966