A battle ensued Mir Qasim his allies -the Nawab of Awadh and Shah Alam 2nd ,the Mughal emperor-on the one side and the EEIC on the other. The allies were defeated by Company forces at Buxar. It was one of the most decisive battles in Indian history. It made the EEIC the real masters of Bengal ,Bihar and Orissa.Mir Jafar was reinstated and after his death his son rewarded the Company with cash and territory .
Separate treaties were signed with the allies in 1765. The Mughal emperor granted the Diwani or the right to collect revenues of Bengal ,Bihar and Orissa to the EEIC . He was given an annual tribute and two districs in Uttar Pardesh . He lived in the fort of Allahabad as a virtual prisoner of the Company.
The Nawab of Bengal had to disband most of his army and had to give the Company supreme control over the police and judicial administration or the nizamat. Reza Khan was nominated to act as the deputy subhader for exercising these powers on behalf of the EEIC.
The Nawab of Awadh had to pay war compensation. He also had take protection from the EEIC for any outside attack ,thus making him totally dependent on them.
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