Introduction:
The Mahalwari Settlement System was introduced by Holt Mackenzie, an Englishman who served as the Commissioner of the Delhi Territory from 1824 to 1832. This system was introduced as a substitute to the Permanent Settlement System in India.

Permanent Settlement System:
The Permanent Settlement System was introduced by Lord Cornwallis in 1793. This system aimed to fix the land revenue of Bengal, Bihar, and Orissa in perpetuity. The system was based on the assumption that the landowners would invest in their land to increase production and pay revenue to the government. The landowners were given the status of zamindars and were made responsible for collecting revenue from the peasants.

Drawbacks of Permanent Settlement System:
However, this system had many drawbacks. The zamindars exploited the peasants and collected more revenue than what was fixed by the government. The system also did not take into account the variations in agricultural production due to natural calamities and other factors.

Introduction of Mahalwari Settlement System:
To overcome the drawbacks of the Permanent Settlement System, Holt Mackenzie introduced the Mahalwari Settlement System in the Delhi Territory in 1822. Under this system, the revenue was to be collected from the cultivators and not from the zamindars. The land was to be divided into mahals or villages, and the revenue was to be fixed for each mahal. The cultivators were to pay the revenue directly to the government.

Benefits of Mahalwari Settlement System:
The Mahalwari Settlement System had many advantages over the Permanent Settlement System. It ensured that revenue was collected directly from the cultivators, which reduced the exploitation of peasants by zamindars. The cultivators also had the incentive to increase production as they directly benefited from it. The system also took into account the variations in agricultural production and fixed revenue accordingly.

Conclusion:
Thus, Holt Mackenzie's introduction of the Mahalwari Settlement System was a significant step towards improving the revenue system in India. It addressed the drawbacks of the Permanent Settlement System and ensured that revenue was collected fairly from the cultivators.