ROBERT CLIVE (1765 - 1767)

(A) Political settlement after Buxar war (23 Oct 1764)

First Treaty of Allahabad (16 Augustb1765)- with Shuja-ud-Daula, Nawab of Audh

1.Nawab surrenders Allahabad and Kora to Emperor Shah Aalam II

2.Pay Rs. 50 lacks to company as war indemnity

3.Balwant Singh, zamindar of Banaras in full possession of his estate.

Thus Nawab entered into an "Offensive and Defensive Treaty" with company

Second Treaty of Allahabad (16 Augustb1765) - with Delhi Emperor Shah Aalam II

1.He was assigned Allahabad and Kora ceded by the Nawab of Audh

2.He granted the company the Diwani of Bengal , Bihar and Orissa (12 August 1765)

3.In return company granted annual payment of Rs. 26 lacks to him and Rs.53 lack for the expenses of the Nizamat of the said provinces

Effect -

1.Nawab became a firm friend of Company

2.Clash with Afgans under Abdali and Marathas avoided

3.Audh became a buffer State

4.Emperor of Delhi became a pensioner means  "An useful rubber stamp" for company.

5.In Bengal,Najm-ud-Daula was allowed to succeed as Nawab of Bengal (After the death of his 
father Mir Jaffer) on the condition that to surrender Nizamat function.

(B)  Dual system

 

 (A) Nizamat  -  Military, Defense, Police and Administration of Criminal and Justice

                                              From -  Najm-ud-Daula, the Nawab of Bengal

   (B) Diwani   -  Financial activities and Revenue affaires

                                              From  -  Emperor Shah Aalam II

Company appointed two Deputy Diwans

        1.     Mohammad reza Khan  ........................................... for Bengal

        2.    Raja Sitab Rai  .............................................................. for Bihar

Clive's justification of Dual System

1.       Open assumption of authority may unite some Indian princes against the company.

2.       The duties on trade assigned by the French, the Dutch to the Nawab would hardly 
      acknowledged the company's Subhaship

3.       Assumption of political power would hamper the England's diplomatic relationship with France, Holland, Portugal and sweden.

4.       Company has not trained man power to run effectively the work of Administration and 
      available Administrators were ignorant of Indian practices, languages, and customs.

5.       Court of Directors also thought that it would adversely affect the trade and profit of the 
       company.

6.       It would pave the way to the British Parliament to interfere with the affairs of the company.

Adverse effects of the Dual System

1.       The Nizamat that is the Administration of the law and order virtually broke down and the administration of justice was reduced to its lowest ebb. Corruption become widespread from 1765 to 1784 under company's regime.

2.       The land revenue was annually framed out to the highest bidder. The tax collectors or 
    contractors had no permanent interest in the land and they rack rented the cultivators, which resulted in to decline of agriculture.

3.       Agriculture depression and privileges of trading duty free in Bengal granted since 1717 
      adversely affected the trade and commerce of the country.

4.       By monopolizing internal trade of India, the Company's servants forced up the prices of raw material like cotton and silk to the disadvantage of Indian producers. the skillful artisans persuaded and the traditional industries deserted as a result of it

5.       Moral degradation also set in Bengal society as their hard-work was being not awarded by sufficient emolument. Hopeless situation made society static, which initiated the process of decay.

   (C)  Administrative Reforms

Civil Reforms -
1.       The servents of the companyinvolved in private trade and missused the 
      company's 'Dustak' to seek exemption from payment of internal trade so Clive 
      compelled the servants to sign 'Covenants' prohibiting acceptance of presents.
      forbade from involving in private trade and made payment of internal 
       duties obligatory.
2.       To compensate the servants of the company for their low salary and 
       loss of income from cessation of private trade Clive formed a
       'Society of Trade' in August 1765 with monopoly of trade in salt, tobacco, 
       and betelnut (Pug). It started systematic plunder of Bengal so Clive 
       abolished society in Jan 1767.

Militery Reforms  -
1.        Clive announced from 1 jan 1766 double allowance would be paid 
        only to officers on service outside the frontiers of Bengal and Bihar 
       against which 'White Mutiny' takes place at Monghyr and Allahabad. 
       Clive effectively tackled with.

Clive was the true founder of British Political dominion in India.
First Governo-General of Bengal. 
Outdid his French adversary Duplex. 
Seige of Arcot(1751), Battle of Plassy(1757), 
against Siraj-ud-Daula. 
Charged for his money weakness in the British Parliment.

K.M.Pannikar said  - 
   "During 1765-1772 the Company established a Robber State in Bengal."