  A novel nanocomposite system has been prepared by dispersing multiferroic
bismuth ferrite nanoparticles (BiFeO$_3$) in a bent-core nematic liquid crystal
(8-F-OH) that exhibits cybotactic clusters. Transition temperature, optical
textures, order parameter $S_m$, and dielectric spectroscopy experiments are
performed in the doped system, and the results are compared with the pure one.
The main experimental outcome is that the doped system has increased
orientational order parameters, even though the cybotactic cluster size is
reduced due to the incorporation of multiferroic BiFeO$_3$ nanoparticles. The
transition temperature, as observed under polarising optical microscopy,
clearly indicates a reduction of $1 - 2~ ^\circ{\rm C}$ in the doped system
compared to the pure one, and we conjecture this is due to the disordering of
the cybotactic cluster in the doped system. Based on the experimental findings,
a Landau-de Gennes-type free energy model is developed. The model qualitatively
explains the increased mean order parameter and the disordering of cybotactic
clusters with increasing polarization value of nanoparticles. This is
corroborated by experimental findings.
