Even before reading the inscription, when I saw this sword I thought it looks from north India, where Nawabs used to rule. It is an Indian Blade with Afghan and Persian influences, because that is what the Nawabs were, Muslim rulers of certain parts of India (think Muslim Rajas), and their smiths would have been more likely to copy Muslim blade designs than Hindu or Sikh designs. Most Tulwars you see come from the Sikhs and those usually have a ricasso and a weird hilt angle to accommodate their fighting style. Plus since India is made up of so many ethnicities, there tends to be a bunch of different style of blades.
Anyways I can't make out the first word since, the picture is not that great, but the rest reads, Sarkaar Nawaab Ali Khaan Bahaadur. Sarkaar can be used for a government employee or someone of rank, Nawaab is the title, Ali is the Name Khaan is the term for respect and bahaadur is brave.
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