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Treaty of Allahabad



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The Treaty of Allahabad was concluded by Clive with Shuja-ud-Daula and the Mughal Emperor Shah Alam II, according to which the British got the right of free trade in Awadh and they were allowed to keep a British Army at the expense of the Nawab of Awadh. Shah Alam II got the districts of Kora and Allahabad and was also given an annual pension of Rs. 26 Lakh. In return of his favour, Shah Alam gave the Diwani of Bengal, Bihar and Orrisa to the British. The company, by another treaty, also agreed to pay a sum of 53 Lakh rupees per annum in lieu of the right of Nizamat to the mirror Nawab. Thus, the company acquired both the Diwani as well as Nizamat rights over Bengal, Bihar and Orrisa.

Robert Clive
Robert Clive began his career in Madras on an annual salary of 5 pounds per annum. His presence in the successful siege of Arcot gained his adulation and his involvement in the conquest of Bengal made him a cynosure of the British public. He was made the Governor of Bengal twice - from 1757-1760 and 1765-1767. As the Governor of Bengal, he made huge fortunes. He established a Dual system of Government for the Bengal Province.

Dual System of Administration in Bengal (1765-1772) Under this system, the administration was divided between the Company and the Nawab but the whole power was actually concentrated in the hands of the Company. This complex system remained in practice during the period from 1765 to 1772. Under this system, Clive gave the responsibility of collecting Diwani to the Indians and appointed two deputy diwans (Mohammad Raza Khan for Bengal and Raja Shitab Roy for Bihar.) For Nizamat functions (police and judicial) the British gave the additional responsibility of deputy Nazim to Mohammad Raza Khan. The deputy Nazim could not be remove without the consent of the company. Thus, although the responsibility for administration - Diwani as well as Nizamat - was exercised through Indian agencies, the company acquired real power. Under dual system, the administration was theoretically divided between the company and the Nawab but the whole power was actually concentrated in the hands of the company. Thus the system was very advantageous for the company: it had power without responsibility

In 1772, Warren Hastings put an end to this Dual System.

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