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Question

Under which treaty British company got the Diwani right of Bengal, Bihar and Orissa from Mughal ruler Shah Alam II?

This question was previously asked in
SSC Stenographer 2017 Previous Year Paper (14-Sep-2017) (Shift 1)
The correct answer is

Treaty of Allahabad

Understanding the Treaty of Allahabad and Diwani Rights

The question asks about the specific treaty that granted the British company the Diwani rights over vast territories in Eastern India from the Mughal ruler Shah Alam II. This is a pivotal moment in the history of British expansion in India, marking the transition from a trading company to a territorial power.

Let's break down the key concepts:

  • Diwani Rights: These were the rights to collect revenue (taxes) from the land and administer civil justice. Gaining Diwani rights was extremely significant as it provided the British East India Company with a vast source of income directly from the Indian populace, funding their military and administrative expenses.
  • Mughal Ruler Shah Alam II: He was the Mughal Emperor during a period of declining Mughal power. His authority was limited, and he often became a figurehead under the control of regional powers or external forces like the British.
  • Bengal, Bihar, and Orissa: These were among the richest provinces of the Mughal Empire, known for their fertile lands and significant revenue potential. Control over these areas' revenue was a major prize.

Historical Context: Leading to the Treaty of Allahabad

The grant of Diwani rights was a direct consequence of the British victory in the Battle of Buxar fought in 1764. The battle involved the forces of the British East India Company (led by Hector Munro) against a combined army of the Mughal Emperor Shah Alam II, the Nawab of Awadh (Shuja-ud-Daulah), and the Nawab of Bengal (Mir Qasim). The British victory was decisive, effectively crushing the combined Indian forces and establishing British military superiority.

Following this victory, two separate treaties were signed in Allahabad in 1765: one with the Nawab of Awadh and another with the Mughal Emperor Shah Alam II.

Analyzing the Options

  • Treaty of Awadh: While a treaty was signed with the Nawab of Awadh in Allahabad, it primarily dealt with the return of territory and war indemnity. It was not the treaty that granted the Diwani rights of Bengal, Bihar, and Orissa to the British.
  • Treaty of Alinagar: This treaty was signed in 1757 between the British East India Company (Robert Clive) and the Nawab of Bengal (Siraj-ud-Daulah) after the British recapture of Calcutta. It restored the Company's privileges and fortifying rights in Bengal but did not grant the Diwani of the entire provinces.
  • Treaty of Calcutta: There isn't a single famous treaty specifically known as the "Treaty of Calcutta" granting these rights. While Calcutta was significant, the crucial agreement happened elsewhere.
  • Treaty of Allahabad: Two treaties were signed in Allahabad in 1765. The second one, signed between the British East India Company and Mughal Emperor Shah Alam II, is the one where the Emperor formally granted the British East India Company the Diwani rights of Bengal, Bihar, and Orissa in exchange for an annual tribute and the districts of Kora and Allahabad.

The Significance of the Treaty of Allahabad

The Treaty of Allahabad (1765) was a landmark event. By securing the Diwani rights, the British East India Company gained legal control over the revenue administration of Bengal, Bihar, and Orissa. This provided them with immense financial resources, which they used to consolidate their power, maintain a strong army, and fund their trade. This treaty essentially laid the financial foundation for the British colonial rule in India.

Under this arrangement, the Company was responsible for collecting revenue (Diwani), while the Nawab of Bengal was still nominally in charge of the administrative and judicial functions (Nizamat). This system, known as the 'Dual Government' in Bengal, was initiated by Robert Clive and proved highly exploitative for the local population as the Company focused solely on maximum revenue collection without concern for welfare or justice.

Conclusion

Based on historical facts, the British company obtained the Diwani rights of Bengal, Bihar, and Orissa from Mughal ruler Shah Alam II under the Treaty of Allahabad signed in 1765.

Revision Table: Key Treaties & Rights

Treaty Year Signatories (Key Parties) Major Outcome Relevant to British Rights
Treaty of Alinagar 1757 British EIC & Nawab Siraj-ud-Daulah Restored British privileges in Bengal, permitted fortification of Calcutta.
Treaty of Allahabad 1765 British EIC & Mughal Emperor Shah Alam II Granted Diwani rights (revenue collection) of Bengal, Bihar, and Orissa to the British EIC.
Treaty of Allahabad 1765 British EIC & Nawab Shuja-ud-Daulah (Awadh) Returned most territories, received war indemnity.

Additional Information: Battle of Buxar and Dual Government

  • Battle of Buxar (1764): This military engagement was crucial. The combined Indian forces, despite being larger, were poorly coordinated compared to the disciplined British forces. The British victory highlighted the military weakness of the Indian rulers and the strength of the British East India Company's army. It cemented British dominance after the political manipulation seen in the Battle of Plassey (1757).
  • Dual Government in Bengal (1765-1772): Instituted after the Treaty of Allahabad, this system divided authority. The British held the Diwani (revenue collection) and control over the army, while the Nawab retained the Nizamat (administration and justice) but with no real power or funds. This system led to administrative chaos, economic exploitation, and widespread suffering in Bengal, contributing significantly to the Bengal famine of 1770. Warren Hastings abolished this system in 1772, bringing Bengal directly under British control.
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