Contemporary legal system of India is called modern legal system mostly foreign in origin and different from traditional legal system of India. But nothing can be done in one night and similarly, modern legal system which is followed in present India has experienced a phase of transition where India was struggling with its traditional beliefs and values system along with new implemented modern legal system. This paper firstly gives a brief introduction on how colonist changes traditional legal system in India which can be studied with the help of writing of Lakshmi Subramanian. This case. Analyse the tradition period how the courts and merchant ’s identities changed during 1800. This was the era of transition when company rule began in administrative, civil and criminal matters but in order to keep the support of public in terms of finance and to avoid conflict English east India company did not fully denied the importance of traditional legal system. To order to better understand the social transformation from traditional to modern legal system it is necessary to understand as what constitutes traditional legal system. It is later on used to compare modern legal system with traditional legal system along with the compromises made during transition. This can be easily done by understanding and analysing writings of Marc Galanter. The writing of Lakshmi Subramanian analyse the compromises made during the transition period.