The Firozpur Jagir was one of the principalities created under the principle of Lord Cornwallis’s second administration, which was to make the security of the British dominions dependent upon the divisions among the independent native chiefs upon their frontiers.  The person receiving the grant or confirmation of such principality from the British Government ’pledged himself to relinquish all claims to aid, and to maintain the peace in his own possessions.’[5] Firozpur was conferred by Lord Lake, in 1805, upon Ahmad Baksh, for his diplomatic services, out of the territories acquired by us west of the Jumna during the Maratha wars.  He had been the agent on the part of the Hindoo chiefs of Alwar in attendance upon Lord Lake during the whole of that war.  He was a great favourite, and his lordship’s personal regard for him was thought by those chiefs to have been so favourable to their cause that they conferred upon him the ‘pargana’ of Loharu in hereditary rent-free tenure.

In 1822, Ahmad Baksh declared Shams-ud-din, his eldest son, his heir, with the sanction of the British Government and the Rajas of Alwar.  In February, 1825, Shams-ud-din, at the request of his father, by a formal deed assigned over the pargana of Loharu as a provision for his younger brothers by another mother, Amin-ud-din and Zia-ud-din;[6] and in October 1826 he was finally invested by his father with the management; and the circumstance was notified to the British Government, through the Resident at Delhi, Sir Charles Metcalfe.  Ahmad Baksh died in October, 1827.  Disputes soon after arose between the brothers, and they expressed a desire to submit their claims to the arbitration of Sir Edward Colebrooke,[7] who had succeeded Sir Charles Metcalfe in the Residency of Delhi.[8] He referred the matter to the Supreme Government; and by their instructions, under date 11th of April, 1828, he was authorized to adjust the matter.  He decided that Shams-ud-din should make a complete and unencumbered cession to his younger brothers of the pargana of Loharu, without the reservation of any right of interference in the management, or of any condition of obedience to himself whatever; and that Amin-ud-din should, till his younger brother came of age, pay into the Delhi treasury for him the annual sum of five thousand two hundred and ten rupees, as his half share of the net proceeds, to be there held in deposit for him; and that the estate should, from the time he came of age, be divided between them in equal shares.  This award was confirmed by Government; but Sir Edward was recommended to alter it for an annual money payment to the two younger brothers, if he could do so with the consent of the parties.