John Louis Esposito is a western scholar of Islamic thoughts; he frequently talks about the political system of Islamic state. Ruler of Islamic state considered himself the vice-regent of Allah on earth and used the authority which Allah almighty awarded him. He can make rules and regulation for the implementation of law but cannot alter the laws with his own will. First three Caliphs were selected by the consultation of Senior Companions of the Holy Prophet Hazrat Muhammad (PBUH).Caliph in Muslim society did not exercise direct political, judicial, military and fiscal control. There were various types of government in Islamic countries at the beginning of the modern era Democracy is a western European system of government. In this system, sovereignty and law making authority is hand over to the subject of a state. Although now large number of Muslim states having this system of government. They used different justification for the authenticity of democracy. Numerous Muslims are effectively occupied with characterizing Islamic majority rules system. Esposito expresses, that in the western world there are two different views about Islam and democracy. Many western scholars give the impact that according to Muslim traditions democracy is not hostile to Islamic political theory, whereas some other opposed these views.