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Bengal was the most fertile and richest of India’s provinces. British East India Company (British 
EIC) obtained royal farman in 1717 from the mughal emperor Farukshiyar for trades in Bengal, 
Gujarat and Deccan region. 
The royal farman was given for  
? Duty free trade for the company in Bengal, Gujarat and Deccan region for an annual 
return of Rs.3000 per annum to the Mughal emperor. 
? Rights to issue dastaks (passes) for Import or export goods by the company. 
The company officials were allowed to carry out private trades in India and they were earning 
huge profits by misusing the royal farman. They issued free passes or dustak for their private trade 
goods. The Nawabs of Bengal were trying to control this misuse by some extend. 
In 1756, young and quick tempered Siraj-Ud-Daulah became Nawab of Bengal and he noticed 
the misuse of dustak for private trades. During that time, Company started the fortification of Fort 
William without the permission of Siraj-Ud-Daulah. He ordered to stop the fortification and 
demolition. But company officials denied Nawab’s order and continued the fortification. Siraj-Ud-
Daulah seized one British factory at Kasimbazar and occupied fort William in 1756. 
Company called more troops from Madras presidency and troops led by Robert Clive and Admiral 
Watson conquered Culcutta in 1757. They compelled the Nawab to agree with all impossible 
demands put forward by the Britishers. This led to a battle famously known as Battle of Plassey. 
 
Battle of Plassey, 1757 
Siraj-Ud-Daulah and British Military led by Robert Clive met at the Battle field of Plassey on 23
rd
 
June 1757. Robert Clive influenced Mir Jafar (Army chief of Nawab) and Rai Durlabh (Chief 
Treasurer of Nawab) and formed conspiracy. Thus the battle of Plassey was a battle on in the 
name as in all 29 British soldiers and around 500 soldiers were lost during the battle. Siraj-Ud-
Daulah was forced to flee from the battle field and he was captured and put into death. 
  
MODERN INDIAN HISTORY
 
   
 
BRITISH RULE
 
Page 2


 
   
 
  
 
Bengal was the most fertile and richest of India’s provinces. British East India Company (British 
EIC) obtained royal farman in 1717 from the mughal emperor Farukshiyar for trades in Bengal, 
Gujarat and Deccan region. 
The royal farman was given for  
? Duty free trade for the company in Bengal, Gujarat and Deccan region for an annual 
return of Rs.3000 per annum to the Mughal emperor. 
? Rights to issue dastaks (passes) for Import or export goods by the company. 
The company officials were allowed to carry out private trades in India and they were earning 
huge profits by misusing the royal farman. They issued free passes or dustak for their private trade 
goods. The Nawabs of Bengal were trying to control this misuse by some extend. 
In 1756, young and quick tempered Siraj-Ud-Daulah became Nawab of Bengal and he noticed 
the misuse of dustak for private trades. During that time, Company started the fortification of Fort 
William without the permission of Siraj-Ud-Daulah. He ordered to stop the fortification and 
demolition. But company officials denied Nawab’s order and continued the fortification. Siraj-Ud-
Daulah seized one British factory at Kasimbazar and occupied fort William in 1756. 
Company called more troops from Madras presidency and troops led by Robert Clive and Admiral 
Watson conquered Culcutta in 1757. They compelled the Nawab to agree with all impossible 
demands put forward by the Britishers. This led to a battle famously known as Battle of Plassey. 
 
Battle of Plassey, 1757 
Siraj-Ud-Daulah and British Military led by Robert Clive met at the Battle field of Plassey on 23
rd
 
June 1757. Robert Clive influenced Mir Jafar (Army chief of Nawab) and Rai Durlabh (Chief 
Treasurer of Nawab) and formed conspiracy. Thus the battle of Plassey was a battle on in the 
name as in all 29 British soldiers and around 500 soldiers were lost during the battle. Siraj-Ud-
Daulah was forced to flee from the battle field and he was captured and put into death. 
  
MODERN INDIAN HISTORY
 
   
 
BRITISH RULE
 
 
   
 
After winning the battle Company proclaimed Mir Jafar as 
new Nawab of Bangal. But he was just a puppet Nawab as the 
company can’t directly take over the administration of Bengal 
as they were having only trade rights in India. Company tried 
to drain the wealth of Bengal through the puppet Nawab Mir 
Jafar. 
As a result, they stared draining the wealth of Bengal province 
in various ways 
? Company was granted undisputed duty free trade in Bengal, Bihar and Orissa including 
duty free private trade for the company officials. They allowed to issue free passes 
(dustak) to all trades in India. 
? Huge compensation and gifts are given to the Company and company officials. 
Estimated nearly Rs. 30 million.  
? Company Directors ordered that Bengal should meet the expenses of Madras and 
Bombay provinces. 
Company used the control over Nawab to drain the wealth of Bengal province and Battle of 
Plassey paved the way for British mastery of Bengal and eventually of the whole of India. 
As the demand of the company and expenses started increasing day by day, the rich treasury of 
Bengal province got drained and British criticized Mir Jafar as incapable in collecting revenue from 
the people. Thus British EIC declared Mir Qasim, son in law of Mir Jafar as new Nawab of Bengal. 
By declaring the new Nawab, British expected the new Nawab to obey all demands of Company. 
But Mir Qasim tried to become an independent ruler by 
? Preventing the misuse of royal farman of 1717 by the company officials for their 
private trades. 
? By strengthening the administrative system and preventing corruption. 
? Declared duty free trade for the Indian merchants. 
These reforms of Mir Qasim was strongly opposed by the company officials and they attacked 
Nawab’s army and defeated him in a series of battles till 1763. 
 
Battle of Buxar, 1764 
Through the past failures Mir Qasim understood that he can’t independently fight a battle with 
modern arms of British. He tried to form an alliance with Shuja-ud-Daulah, Nawab of Avadh with 
the support of Mughal Emperor Shah Alam II. The alliance clashed with the company’s army at 
battle field of Buxar on 22
nd
 October 1764 and got defeated. The battle of Buxar was a purely 
military victory and established the superiority of military power and arms over Indian powers. 
Page 3


 
   
 
  
 
Bengal was the most fertile and richest of India’s provinces. British East India Company (British 
EIC) obtained royal farman in 1717 from the mughal emperor Farukshiyar for trades in Bengal, 
Gujarat and Deccan region. 
The royal farman was given for  
? Duty free trade for the company in Bengal, Gujarat and Deccan region for an annual 
return of Rs.3000 per annum to the Mughal emperor. 
? Rights to issue dastaks (passes) for Import or export goods by the company. 
The company officials were allowed to carry out private trades in India and they were earning 
huge profits by misusing the royal farman. They issued free passes or dustak for their private trade 
goods. The Nawabs of Bengal were trying to control this misuse by some extend. 
In 1756, young and quick tempered Siraj-Ud-Daulah became Nawab of Bengal and he noticed 
the misuse of dustak for private trades. During that time, Company started the fortification of Fort 
William without the permission of Siraj-Ud-Daulah. He ordered to stop the fortification and 
demolition. But company officials denied Nawab’s order and continued the fortification. Siraj-Ud-
Daulah seized one British factory at Kasimbazar and occupied fort William in 1756. 
Company called more troops from Madras presidency and troops led by Robert Clive and Admiral 
Watson conquered Culcutta in 1757. They compelled the Nawab to agree with all impossible 
demands put forward by the Britishers. This led to a battle famously known as Battle of Plassey. 
 
Battle of Plassey, 1757 
Siraj-Ud-Daulah and British Military led by Robert Clive met at the Battle field of Plassey on 23
rd
 
June 1757. Robert Clive influenced Mir Jafar (Army chief of Nawab) and Rai Durlabh (Chief 
Treasurer of Nawab) and formed conspiracy. Thus the battle of Plassey was a battle on in the 
name as in all 29 British soldiers and around 500 soldiers were lost during the battle. Siraj-Ud-
Daulah was forced to flee from the battle field and he was captured and put into death. 
  
MODERN INDIAN HISTORY
 
   
 
BRITISH RULE
 
 
   
 
After winning the battle Company proclaimed Mir Jafar as 
new Nawab of Bangal. But he was just a puppet Nawab as the 
company can’t directly take over the administration of Bengal 
as they were having only trade rights in India. Company tried 
to drain the wealth of Bengal through the puppet Nawab Mir 
Jafar. 
As a result, they stared draining the wealth of Bengal province 
in various ways 
? Company was granted undisputed duty free trade in Bengal, Bihar and Orissa including 
duty free private trade for the company officials. They allowed to issue free passes 
(dustak) to all trades in India. 
? Huge compensation and gifts are given to the Company and company officials. 
Estimated nearly Rs. 30 million.  
? Company Directors ordered that Bengal should meet the expenses of Madras and 
Bombay provinces. 
Company used the control over Nawab to drain the wealth of Bengal province and Battle of 
Plassey paved the way for British mastery of Bengal and eventually of the whole of India. 
As the demand of the company and expenses started increasing day by day, the rich treasury of 
Bengal province got drained and British criticized Mir Jafar as incapable in collecting revenue from 
the people. Thus British EIC declared Mir Qasim, son in law of Mir Jafar as new Nawab of Bengal. 
By declaring the new Nawab, British expected the new Nawab to obey all demands of Company. 
But Mir Qasim tried to become an independent ruler by 
? Preventing the misuse of royal farman of 1717 by the company officials for their 
private trades. 
? By strengthening the administrative system and preventing corruption. 
? Declared duty free trade for the Indian merchants. 
These reforms of Mir Qasim was strongly opposed by the company officials and they attacked 
Nawab’s army and defeated him in a series of battles till 1763. 
 
Battle of Buxar, 1764 
Through the past failures Mir Qasim understood that he can’t independently fight a battle with 
modern arms of British. He tried to form an alliance with Shuja-ud-Daulah, Nawab of Avadh with 
the support of Mughal Emperor Shah Alam II. The alliance clashed with the company’s army at 
battle field of Buxar on 22
nd
 October 1764 and got defeated. The battle of Buxar was a purely 
military victory and established the superiority of military power and arms over Indian powers. 
 
   
 
Again Mir Jafar was restored as the Nawab of Bengal by the British EIC and they firmly established 
as the master of Bengal, Bihar and Orissa. 
As a result of Battle of Buxar, Treaty of Allahabad was signed between Robert Clive and Mughal 
Emperor Shah Alam II. As per this treaty  
? Army of Bengal Nawab was disbanded and administration through Deputy Subahdar 
nominated by Company. The termination of Deputy Subahdar can be done only after 
approval from the British EIC. 
? Company gained supreme control over administration of Bengal (Nizamat) 
? Company secured Diwani function (right to collect revenue) of Bengal, Bihar and Orissa 
region. 
? Mughal Emperor Shah Alam II was kept as a virtual prisoner in Allahabad Fort. 
The Battle of Buxar,1764 established British EIC as a military power in India and they started 
administrating the Indian provinces through new system of governance called Dual System. 
 
 
 
 
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