After the death of Nizam-ul-Mulk in 1748, the Nizam of Hyderabad, a civil war for succession , known as the 2nd Carnatic War, broke out in the south between Mir Ahmad Ali Khan ( Nasir Jung), the son of the Nizam-ul-Mulk, and Hidayat Muhi ud-Din Sa'adullah Khan ( Muzaffar Jung), the grand son of Nizam-ul-Mulk.
This opened a window of opportunity for Chand Sahib, who wanted to become Nawab of Arcot. He joined the cause of Muzaffar Jung and began to conspire against the Nawab Awaruddin Muhammed Khan in Arcot. The French allied with Chand Sahib and Muzaffar Jung to bring them into power in their respective states. But soon the British also intervened. To effect the French influence, they began supporting Nasir Jung and Muhammad Ali Khan Walajah (son of the deposed Nawab Anwarauddin Muhammad Khan of Arcot). Initially, the French succeeded in both states in defeating and murdering their opponents and placing their supporters on thrones in 1749. In 1751, however, Robert Clive led British troops to capture Arcot. Clive's success led to additional victories for the British and their Nizam and Arcot allies. The War ended with the treaty of Pondichery, signed in 1754. Muhammad Ali Khan Walajah was recognised as the Nawab of Arcot. The French leader Dupleix was asked to return to France. The Directors of the French East India Company wer dissatisfied with Dupleix's political ambitions, which had led to immense financial loss. In 1754, Charles Godeheu replaced Dupleix.
The outbreak in 1756 of the Seven Years' War in Europe resulted in renewed conflict between French and British forces in India. The Third Carnatic War spread beyond southern India into Bengal where British forces captured the French settlement of Chndernagore (now Chandannagar) in 1757. However the war was to decide in the south , as British Commander Sir Eyre Coote decisively defeated the French under the Comte sw Lally at the Battle of Wandiwash in 1760.The French capital Pondichery fell to the British in 1761,.The treaty of Paris in 1763 decided the result of both the parties. France to have factories ( trading posts) and British would get dominant foreign power in India. 'Let there be light, and there was light' for British in India.