Riyaz al-salatin 111.6
The Riyazu-s-salatin (Abdus Salam) 111.6
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111.6.1
Time itself with the sword in hand is always after retribution; What need is there for anyone to seek for retaliation? Nawab Mahabat Jang, shewing considerateness, paid travelling expenses to the Afghan ladies, and allowed them to depart honourably to Darbhanga, and followed the adage "Turn Evil by Good." Appointing Siraju-d-daulah, son of Zainu-d-din Ahmad Khan, to be Subadar of Azimabad, in succession to his father, and leaving Rajah Janaki Ram as Siraju-d-daulah's Deputy there, and finishing the administrative arrangements of that Subah, Mahabat Jang returned to Bengal, in order to drive out the Mahratta freebooters.
111.6.2
About this time, the office of Faujdar of the tract of Purniah was vacant, owing to the flight to the Imperial Capital of the Khan Bahadur, son of Nawab Saif Khan. Ali Vardi Khan conferred the above Faujdarship on Said Ahmad Khan Saulat Jang, in whose heart ambition for the Nizamat of Bengal lurked, and in whose head visions of ruling over Bengal existed. At the time when Mahabat Jang was engaged in fighting with Sham Sher Khan, Siraju-d-daulah shewed his temper to Nawab Izazu-d-daulah Atau-l-lah Khan Sabit Jang, a son-in-law of Haji Ahmad, who held the office of Faujdar of Akbarnagar (Rajmahal). Knowing Atau-l-lah Khan to be brave and popular with the army, and ambitious and sound-headed, Siraju-d-daulah set to work his ruin, and plying Ali Vardi Khan with his suspicions gained over the latter, and induced him to send a message to Atau-l-lah to quit the country, or else to prepare for death. The aforesaid Khan, after fighting some time in self-defence, set out at length for the Imperial Capital, remained in the company of Nawab Vaziru-l-mulk Safdar Jang, and then joining Rajah Nul Rai in the Rohilla Afghan war was killed at Farrukhabad.
111.6.3
As in consequence of the insurrection at Azimabad, the Mahratta freebooters had taken possession of the Subah of Orissa, Mahabat Jang, not halting in Bengal, set out for that Subah. Expelling the Mahratta freebooters from that Subah, Mahabat Jang put to death Syed Nur, Sarandaz Khan, and other officers, who were adherents of the Mahratta freebooters, and who were entrenched in the fort of Barahbati, by drawing them out of their entrenched position by use of diplomatic assurances. And capturing the horses and armaments of their comrades, and expelling them all from Katak, Mahabat Jang returned to Bengal. As Mir Habib was the root of all the mischiefs and troubles, Mahabat Jang hatched a plan for his destruction. He sent to his name a letter, purporting falsely to be a reply to his message, to the following effect : " The letter sent by you has been received ; what you have written in respect of your plan to extirpate the Mahratta freebooters, has met with my approval. It is a very good idea : you from that side, and I from this side, will be on the alert and wait. By every means possible, try and induce them to come this side, and then what is now in the minds of us both will come to pass." Mahabat Jang sent this message through a courier, ininstructing the latter to proceed by such a route, that he might be intercepted by the Mahrattas and the letter might fall into their hands. This ruse proved a complete success, and the Mahrattas suspecting Mir Habib slew him.
111.6.4
To sum up, for twelve long years the fires of war and slaughter kindled between the Mahrattas and Mahabat Jang, and the Mahrattas did not retire without levying the Chauth. And owing to Haji Ahmad and Zainu-d-din Ahmad Khan having fallen, the power of Mahabat Jang was weakened, whilst old age and infirmity told on his physical vigour. Of necessity, in view of expediency, and in compliance with the entreaties of Nawazish Muhammad Khan Shahamat Jang, Mahabat Jang at last concluded a peace with the Mahratta freebooters, agreeing to pay the latter Chauth for the three Subahs, and through the medium of Maslihiu-d-din Muhammad Khan, nephew of Mir Habib, and Sadru-l-Haq Khan, fixed the basis for the terms of peace and the settlement of the Chauth. In lieu of the payment of the Chauth, he assigned the revenue of Subah of Orissa to the Mahrattas, and appointed Sadru-l-Haq to be its Administrator and Governor. After settling this important affair with the Mahrattas, Mahabat Jang regained peace of mind, and took to travelling and hunting. After ruling for sixteen years, he died of dropsy on Saturday, 9th Rajab, 1169 A.H., corresponding to the second year of the accession of Emperor Alamgir II, and was buried in the Khush Bagh. Siraju-d-daulah, who was his heir, then mounted the masnad of Nizamat.
111.6.5
now 75 years old, and physical ailment and infirmity had seized him, and as the war between him and Mahrattas had been protracted to ten years, and as the chief Afghan pillars of his State had revolted against him, and as the people had suffered indescribable miseries during this long struggle, Mahabat Jang accepted the overtures of peace, which was concluded through the intervention of Mirza Salih (on behalf of Mir Habib and the Mahrattas) and Mir Jafar (on behalf of Mahabat Jang). The terms of peace were : (1). Mir Habib becoming a servant of Mahabat Jang should on behalf of the latter rule as Deputy Governor over Orissa. (2). The revenue of Orissa should be assigned by Mir Habib for the pay of Raghoji Bhosla's Mahratta army of occupation. (3). That over and above the revenues of Orissa, twelve laks of rupees should be annually paid by Mir Habib to Raghoji Bhoslah (presumably from the revenues of other provinces), on condition that Raghoji's troops should not raid the dominions of Mahabat Jang. (4). The river Sunamukhia (or Subarnarikha) near Jalisar (Jallasore), was to form the demarcation-line of the boundaries of Orissa and Bengal ; Mednipur at this time being separated from Orissa and annexed to Bengal.