Mir Jafar was again made nawab, and paid large sums both to the company and its servants as compensation for their losses. The war, however, was not over, for the nawab wazir espoused the cause of Mir Kasim, and, in conjunction with the Mughal emperor, Shah Alam, threatened Bengal. Major Hector Munro took command of the British army, and found it in a mutinous condition; desertions to the enemy were frequent. He captured a large body of deserters, caused twenty-four of the ringleaders to be blown from guns, and by his dauntless conduct restored discipline among the troops. With about 7,000 men, of whom only some 1,000 were Europeans, he inflicted a crushing defeat on the allied forces, 50,000 strong, at Baxar on October 23, 1764. The enemy lost 6,000 men and 167 guns. Oudh lay at the disposal of the English, and Shah Alam sought refuge with the conquerors. Early in 1765 Mir Jafar died, and the council at Calcutta, without consulting the emperor, appointed his son to succeed him, receiving in presents from him L139,357, besides money unaccounted for. These revolutions and wars cost the company much money, and, while its servants were enriching themselves, it incurred heavy debts. Clive was called upon to put an end to the maladministration of Bengal. He refused to return to India while Sullivan was chairman of the court of directors. After a sharp contest, in which large sums were spent, the proprietors put his party in power. He was invested with full authority as commander-in-chief and governor of Bengal to act in conjunction with a select committee. He landed in India in May, 1765. During his administration of about eighteen months he secured for the company the virtual sovereignty over its conquests without dispossessing the nominal rulers, and he took measures for the reformation of the company's service. Averse from a forward policy of conquest, he restored Oudh to the nawab wazir on payment of L500,000. Allahabad and Kora were assigned to the emperor, together with a tribute from Bengal, and in return Shah Alam granted to the company the right of levying and administering the revenues of Bengal, Behar, and Orissa, together with jurisdiction in the Northern Circars. The nawab of Bengal received an annual pension of L600,000, and surrendered all his power to the company, except the right of criminal jurisdiction. Clive reorganised the army, and stopped the double _batta_, or allowance, granted by Mir Jafar after the battle of Plassey. He forbade illicit trade and the receipt of presents, and secured the company's servants increased salaries. These reforms were effected in the face of violent opposition, both in civil and military quarters. Two hundred officers conspired to resign their commissions on the same day. Clive faced the mutiny successfully; he cashiered the leaders and accepted the submission of the younger men. Ill-health obliged him to return to England in January, 1767. [Sidenote: _AFFAIRS OF THE EAST INDIA COMPANY._]