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Battle of Buxar 1764 — Causes, Result, Treaty of Allahabad and Diwani

The real conquest. Three rulers, one army, and the treaty that made a trading company the tax collector of eastern India.

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The battle that finished the job

Plassey was won by bribery. Buxar was won by fighting — and that is exactly why it mattered more.

The Battle of Buxar was fought on 22 October 1764 at Buxar (Baksar), on the bank of the Ganga in present-day Bihar. On one side stood the East India Company under Major Hector Munro. On the other stood a combined army of three powers — a rare thing in Indian history. The Company won, and the settlement that followed made it the legal ruler of eastern India, not merely its hidden master.

KEY TERM
The three rulers who fought together

Mir Qasim — the deposed Nawab of Bengal, who wanted his throne back. Shuja-ud-Daula — the Nawab Wazir of Awadh. Shah Alam II — the Mughal Emperor himself. Three of the most important rulers of the day, defeated by one Company army in a single battle.

Why the fight happened

After Plassey the Company installed Mir Jafar as its puppet. When he could not satisfy its demands for money, the Company replaced him with Mir Qasim — expecting another puppet. Mir Qasim turned out to be an able and independent ruler, and that was the problem.

CauseWhat it meant
Continued misuse of dastaksCompany officials went on using duty-free passes for their private trade, so Indian merchants paid duties while the English paid none
Mir Qasim abolished all dutiesTo make trade equal, Mir Qasim removed inland duties for everyone. The Company objected — it wanted a privilege, not fairness. This is the immediate trigger of the conflict
Mir Qasim shifted his capitalHe moved his capital from Murshidabad to Munger in Bihar, away from Company influence, and began modernising his army
The Company wanted a puppetMir Qasim behaved like a real ruler rather than a dependent, so the Company decided to remove him
THE IRONY WORTH REMEMBERING

Mir Qasim's crime, in the Company's eyes, was treating everyone equally. By abolishing inland duties for all traders he ended the English advantage — and the Company went to war to get that advantage back. This single fact explains the whole quarrel better than any list of dates.

Mir Qasim was defeated and fled to Awadh, where he persuaded Shuja-ud-Daula and the Mughal Emperor Shah Alam II to join him. Their combined army met the Company at Buxar.

The battle and why the alliance lost

The allied army was far larger — roughly 40,000 to 50,000 men against Munro's force of about 7,000. It still lost, and the reasons matter more than the numbers.

  • The three allies did not trust one another and never fought as one force
  • There was no single commander with authority over the whole army
  • The Company troops were better trained, better disciplined and better paid
  • The allies attacked at different times instead of together, letting Munro face them piece by piece

The Treaty of Allahabad, 1765

In August 1765, Robert Clive concluded two treaties at Allahabad — one with the Nawab of Awadh and one with the Mughal Emperor. These are the provisions asked about most often.

Treaty with Shuja-ud-Daula
Awadh becomes a buffer state

He surrendered Allahabad and Kara, paid a war indemnity of about fifty lakh rupees to the Company, and restored the estate of Balwant Singh, the zamindar of Banaras. Crucially, Awadh was not annexed — Clive kept it as a friendly buffer state so the Company would not have to defend a long frontier against Afghan and Maratha attacks.

Treaty with Shah Alam II
The Diwani is granted

The Emperor issued a farman granting the Diwani of Bengal, Bihar and Orissa to the Company, in return for an annual payment of about twenty-six lakh rupees. He was to live at Allahabad under Company protection, becoming in effect a pensioner of the Company he had just fought.

KEY TERM
Diwani and Nizamat

Diwani meant the right to collect the land revenue — the taxes. Nizamat meant responsibility for administration, police and justice. After 1765 the Company held the Diwani while the Nawab kept the Nizamat on paper. The Company took the money; the Nawab kept the blame.

DUAL GOVERNMENT — POWER WITHOUT RESPONSIBILITY

This arrangement, running from 1765 to 1772, is called the Dual Government or Dual System of Bengal, and it was set up by Robert Clive. The Company collected the revenue but was not answerable for governing; the Nawab was answerable but had no money or power. Nobody was responsible for the welfare of the people. The result was ruin, and it contributed directly to the terrible Bengal Famine of 1770. Warren Hastings ended the system in 1772 and took direct charge.

CHECK YOURSELF

Why is Buxar considered more decisive than Plassey?

Plassey was won by conspiracy and gave the Company influence over a Nawab who was still nominally the ruler. Buxar was a genuine military victory over three major powers together, and it led to the Diwani of 1765, which gave the Company the legal right to collect the revenue of Bengal, Bihar and Orissa.

REMEMBER

Buxar = Bihar, 1764, Munro, three rulers. And remember the order of the losers: Mir Qasim, Shuja-ud-Daula, Shah Alam II — the deposed Nawab, the Nawab of Awadh, the Mughal Emperor.

Everything on one look

The date, the people, the treaty and the result.

THE BATTLE
  • Fought on 22 October 1764 at Buxar in present-day Bihar
  • Major Hector Munro commanded the Company forces
  • The allies were Mir Qasim, Shuja-ud-Daula and Shah Alam II
  • Mir Qasim was the deposed Nawab of Bengal
  • Shuja-ud-Daula was the Nawab Wazir of Awadh
  • Shah Alam II was the Mughal Emperor
THE SETTLEMENT
  • Treaty of Allahabad signed in August 1765 by Robert Clive
  • Two treaties — one with Awadh, one with the Emperor
  • The Company gained the Diwani of Bengal, Bihar and Orissa
  • Awadh was kept as a buffer state, not annexed
  • Dual Government ran from 1765 to 1772
  • Warren Hastings ended Dual Government in 1772
COMMON TRAPS
  • The Battle of Buxar was fought in 1764, and Plassey in 1757 — do not swap them
  • Hector Munro led the British at Buxar, while Robert Clive led at Plassey
  • Robert Clive signed the Treaty of Allahabad, though he did not fight the battle
  • Mir Qasim, not Mir Jafar, was the Nawab who fought at Buxar
  • Mir Qasim abolished inland duties for all traders — this equality triggered the war
  • The Treaty of Allahabad was signed in 1765, a year after the battle
  • The Diwani covered Bengal, Bihar and Orissa, and meant revenue collection only
  • Nizamat meant administration and justice, which stayed with the Nawab on paper
  • Awadh was deliberately not annexed and was kept as a buffer state
  • Dual Government was started by Clive and ended by Warren Hastings in 1772
QUICK BYTES
  • The Battle of Buxar was fought on 22 October 1764
  • Buxar is located in present-day Bihar, on the bank of the Ganga
  • Major Hector Munro commanded the East India Company forces at Buxar
  • The Company fought a combined army of three powers at Buxar
  • Mir Qasim, the deposed Nawab of Bengal, was one of the three allies
  • Shuja-ud-Daula, the Nawab Wazir of Awadh, was the second ally
  • Shah Alam II, the Mughal Emperor, was the third ally
  • Mir Qasim had shifted his capital from Murshidabad to Munger
  • Mir Qasim abolished inland duties for all traders, angering the Company
  • The Treaty of Allahabad was signed in August 1765 by Robert Clive
  • Two separate treaties were signed at Allahabad, with Awadh and the Emperor
  • The Company received the Diwani of Bengal, Bihar and Orissa in 1765
  • Diwani meant the right to collect land revenue
  • Nizamat meant administration, police and justice
  • Shuja-ud-Daula paid a war indemnity of about fifty lakh rupees
  • Awadh was kept as a buffer state rather than being annexed
  • Shah Alam II was to reside at Allahabad under Company protection
  • The Dual Government of Bengal ran from 1765 to 1772
  • Dual Government was introduced by Robert Clive after the Diwani grant
  • Warren Hastings abolished the Dual Government in 1772
  • The Bengal Famine of 1770 occurred during the Dual Government period

Frequently Asked Questions

When and where was the Battle of Buxar fought?

On 22 October 1764 at Buxar, also spelled Baksar, on the bank of the Ganga in present-day Bihar. It was fought between the East India Company under Major Hector Munro and the combined armies of Mir Qasim, Shuja-ud-Daula and Shah Alam II.

Who fought against the British in the Battle of Buxar?

Three allied powers fought together: Mir Qasim, the deposed Nawab of Bengal; Shuja-ud-Daula, the Nawab Wazir of Awadh; and Shah Alam II, the Mughal Emperor. Despite their larger numbers they lost because they did not trust one another, had no single commander, and attacked at different times.

What caused the Battle of Buxar?

The immediate cause was Mir Qasim's decision to abolish inland trade duties for all merchants. Company officials had been misusing duty-free dastaks for private trade, and when Mir Qasim removed duties for everyone he ended their advantage. The Company objected, war followed, and Mir Qasim fled to Awadh to build an alliance.

What was the Treaty of Allahabad and when was it signed?

It was signed in August 1765 by Robert Clive, and consisted of two separate treaties. With Shuja-ud-Daula of Awadh, the Company took Allahabad and Kara and a war indemnity, but left Awadh unannexed as a buffer state. With Shah Alam II, the Emperor granted the Company the Diwani of Bengal, Bihar and Orissa in return for an annual payment.

What is the difference between Diwani and Nizamat?

Diwani was the right to collect the land revenue, meaning the taxes. Nizamat covered administration, police and the delivery of justice. After 1765 the Company held the Diwani while the Nawab retained the Nizamat on paper, so the Company took the income while the Nawab carried the responsibility.

What was the Dual Government of Bengal?

It was the system running from 1765 to 1772 in which the Company held the revenue rights while the Nawab held nominal administrative authority. Because the Company had power without responsibility and the Nawab responsibility without power, governance collapsed. Warren Hastings abolished it in 1772 and brought Bengal under direct Company administration.

Why is Buxar considered more important than Plassey?

Plassey was a small engagement won through the betrayal of Mir Jafar, and it gave the Company influence behind the throne. Buxar was a real military victory against the three greatest powers of northern India at once, and it produced the Diwani, which made the Company the legal revenue authority over Bengal, Bihar and Orissa.

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