Islam stands for " limited sovereignty" as against "popular sovereignty" of the West. The State is be governed in accordance with the injuctions of Quran i.e. sovereignty belongs to Allah alone; Man, being His Vicegerent, has to adminster the affairs of State within the bounds of divine law and mutual consultation among the believer. The form of government had no real value bt the Islamic State has to have three characteristics: Sovereignty of Allah, Vicegerency of Man and Mutual consultation. In addition, under divine dispension, the State, as the collection of believers, and the man, as the vicegerent, are responsible to Allah with respect to their conduct. Therefore, the Government should be based on the consent of the governed. This requirement gives the Government the colour of DEMOCRACY.