Indian history · British era

From Traders to Rulers: The East India Company, the Battle of Plassey (1757), the Battle of Buxar (1764), the Diwani and Dual Government in Bengal — Exam Notes

In 1600 the East India Company was a group of London merchants with a royal charter to trade in the East. By 1765 it collected the land revenue of Bengal, Bihar and Odisha — the richest provinces of Mughal India. Two battles, Plassey and Buxar, explain this transformation. This guide arranges the story and its key terms for exams.

By PunjabExams Editorial Team · Updated 29 October 2026 · 7 min read · How we prepare guides

The Company comes to India

Other European rivals: the Portuguese (Vasco da Gama, 1498), the Dutch (1602), the Danes (1616) and the French (1664). The British defeated the French in the three Carnatic Wars (1746–1763), decisively at Wandiwash (1760).

Why Bengal?

Bengal was rich in textiles, silk, saltpetre and grain. Its nawabs — Murshid Quli Khan, Shuja-ud-din and Alivardi Khan — were practically independent of the Mughals. The Company's misuse of dastaks for the private trade of its officials, and its fortification of Calcutta without permission, created constant friction.

Siraj-ud-Daulah and the fall of Calcutta

Siraj-ud-Daulah, grandson of Alivardi Khan, became Nawab in April 1756 at about twenty-three. He objected to the Company's fortification of Calcutta and its shelter to his opponents.

• In June 1756 he captured Fort William, Calcutta.
• The "Black Hole of Calcutta" episode followed: according to the account of J. Z. Holwell, 146 British prisoners were locked in a small room overnight and 123 died. Historians consider the numbers exaggerated, and the story was later used to justify British actions.

The Battle of Plassey (23 June 1757)

Robert Clive and Admiral Watson retook Calcutta (January 1757). Clive then conspired with leading figures of the Nawab's court:

At Plassey (Palashi), on the Bhagirathi in Nadia district, on 23 June 1757, Clive's small force (about 3,000) faced the Nawab's large army. Mir Jafar and Rai Durlabh held back their troops. Only the loyal commanders Mir Madan and Mohan Lal fought; after Mir Madan fell, the Nawab's army broke. Siraj-ud-Daulah fled, was captured and killed by Miran, Mir Jafar's son.

Results of Plassey

• Mir Jafar became Nawab — a puppet of the Company.
• The Company received the zamindari of the 24 Parganas, huge payments, and the right to free trade.
• Clive received a jagir and became very rich; Company servants took vast "presents".
• Historians regard Plassey as a victory of conspiracy more than battle, but it gave the British control of Bengal's resources.

Mir Qasim and the road to Buxar

The Company replaced Mir Jafar with his son-in-law Mir Qasim in 1760, in return for the districts of Burdwan, Midnapore and Chittagong.

Mir Qasim was capable and independent-minded:

• he moved his capital from Murshidabad to Munger (Monghyr), built an army and an arms factory;
• he abolished internal duties for all traders, removing the unfair advantage of Company officials who misused dastaks.

War broke out in 1763. Defeated in several battles, Mir Qasim fled and formed an alliance with Shuja-ud-Daulah, Nawab of Awadh, and the Mughal emperor Shah Alam II.

The Battle of Buxar (22 October 1764)

At Buxar on the Ganga (Bihar), the Company's army under Major Hector Munro defeated the combined forces of Mir Qasim, Shuja-ud-Daulah and Shah Alam II. Unlike Plassey, Buxar was a hard-fought military victory against the major powers of north India, and it confirmed British supremacy in the east.

Treaties of Allahabad (1765)

Robert Clive, back as Governor of Bengal, signed two treaties at Allahabad in August 1765:

Dual government (1765–1772)

Clive set up the dual system in Bengal:

• the Company held the diwani — revenue and civil justice — but collected revenue through Indian deputy diwans (Muhammad Reza Khan for Bengal, Shitab Rai for Bihar);
• the Nawab held the nizamat — police and criminal justice — but depended on the Company for funds and troops.

The result was power without responsibility: the Company took the revenue, and nobody cared for the people. The terrible Bengal famine of 1770, which killed perhaps a third of the population of Bengal, exposed the system's failure.

Warren Hastings ended dual government in 1772, and the Company took over direct administration. Parliament then passed the Regulating Act of 1773.

Key points to remember

• Charter 31 December 1600; Surat factory 1613; Roe at Jahangir's court 1615.
• Farrukhsiyar's farman (1717) — "Magna Carta" of the Company.
• Plassey, 23 June 1757 — Clive vs Siraj-ud-Daulah; Mir Jafar's betrayal.
• Buxar, 22 October 1764 — Hector Munro vs Mir Qasim, Shuja-ud-Daulah and Shah Alam II.
• Treaty of Allahabad, 1765 — diwani of Bengal, Bihar, Orissa; dual government to 1772.

Practice questions

1. Q1. The Battle of Plassey was fought on:

   • (a) 23 June 1757
   • (b) 22 October 1764
   • (c) 20 June 1756
   • (d) 12 August 1765
   Show answer

   Answer: (a) 23 June 1757 — Clive defeated Siraj-ud-Daulah at Plassey on 23 June 1757.

2. Q2. Which commander of Siraj-ud-Daulah betrayed him at Plassey?

   • (a) Mir Madan
   • (b) Mir Jafar
   • (c) Mohan Lal
   • (d) Mir Qasim
   Show answer

   Answer: (b) Mir Jafar — Mir Jafar held back his troops and was made Nawab.

3. Q3. The British commander at the Battle of Buxar was:

   • (a) Robert Clive
   • (b) Hector Munro
   • (c) Eyre Coote
   • (d) Warren Hastings
   Show answer

   Answer: (b) Hector Munro — Major Hector Munro won at Buxar in 1764.

4. Q4. The diwani of Bengal, Bihar and Orissa was granted to the Company by:

   • (a) Farrukhsiyar
   • (b) Shah Alam II
   • (c) Bahadur Shah II
   • (d) Aurangzeb
   Show answer

   Answer: (b) Shah Alam II — Shah Alam II granted it under the Treaty of Allahabad (1765).

5. Q5. Which farman is called the 'Magna Carta' of the East India Company?

   • (a) Jahangir's farman of 1613
   • (b) Farrukhsiyar's farman of 1717
   • (c) Shah Alam II's farman of 1765
   • (d) Aurangzeb's farman of 1690
   Show answer

   Answer: (b) Farrukhsiyar's farman of 1717 — Farrukhsiyar's farman gave duty-free trade in Bengal.

6. Q6. Dual government in Bengal was ended in 1772 by:

   • (a) Robert Clive
   • (b) Warren Hastings
   • (c) Lord Cornwallis
   • (d) Vansittart
   Show answer

   Answer: (b) Warren Hastings — Warren Hastings ended dual government and took over direct administration.

Frequently asked questions

Why is Buxar considered more important than Plassey?

Plassey was won mainly through conspiracy against one Nawab; Buxar was a real military victory over the combined forces of Bengal, Awadh and the Mughal emperor.

What was the 'diwani'?

The right to collect land revenue and administer civil justice.

What was dual government?

Clive's system (1765–72) in which the Company collected revenue while the Nawab was nominally responsible for law and order — power without responsibility.

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