As promised, the East India Company appointed Mir Jafar as Nawab of Bengal.

Robert Clive also went back to England. With the passage of time, Mir Jafar became hostile towards the British. The Company decided to replace him with his son-in-law Mir Qasim. Mir Qasim was an efficient, disciplined and clever ruler. The problem arose between Nawab and the Company on account of non-payment of taxes, which ultimately brought both the forces face to face with each other.

In 1763, Mir Qasim was defeated by the Company but he escaped. He fled to Oudh, There he joined forces with Shuja- ud-daulah, the Nawab of Oudh, and with Shah Alam II, the Emperor of Delhi, and fought the British at the Battle of Buxar on 22 October 1764. The combined Indian army lost the battle. He reorganized his army along with the forces of Nawab of Oudh, Shuja-ud-Daulah and Mughal Emperor Shah Alam II. The British East India Company won the war, and all of a sudden Bengal, Avadh (Lucknow) and Mughal Empire was under their control. Robert Clive was sent to India to take control of the situation. That’s how the East India Company, a trading company, emerged as a political power in the subcontinent of India.