Alivardi Khan ascended to the throne of the Nawab of Bengal after his army attacked and captured the capital of Bengal, Murshibad. Alivardi's attitude to the Eurpeans of Bengal is said to be strict. During his wars with the Marathas, he allowed the strengthening of fortifications by the Europeans and the construction of The Maratha Ditch in Calcutta by the British. On the otherhand, he collected large amounts of money from them for the upkeep of his war. He was well-informed of the situation in southern India, where the British and the French had started a proxy war using the local princes and the rulers.
Alivardi did not wish such a situation to transpire in his province and thus excercised caution in his dealings with the Europeans. However, there was continual friction, the British always complained that they were prevented from the full enjoyment of the farman of 1717 issued by Farrukhsiyar. The British, however, protected subjects of the Nawab, gave passes to native traders to trade custom-free and levied large duties on goods coming to their districts- actions which were detrimental to the Nawab's Revenue.
But Alivardi Khan died in April 1756 and he was succeeeded by his nineteen years old grandson, Siraj-ud-daulah.