At this period a Mughal Governor Jafar Ali, was in charge of the revenue administration of the Circars. So it was settled that if Jafar Ali, failed to remit the revenues to Bussy within the stipulated time, the sum should be made good from the treasury of the Nizam.
This passage describes a financial arrangement where Jafar Ali, the Mughal governor of the Circars, is responsible for collecting and remitting taxes to Bussy within a specific time frame. If he fails to do so, the Nizam's treasury will be used to cover the shortfall.