The British Prime Minister, Lord Attlee, declared on March 15, 1946, that British Cabinet Mission would visit India to make recommendations regarding constitutional reforms, to be introduced in India. The Cabinet Mission constituted of Lord Lawrence, Sir Stafford Cripps and A.V. Alexander visited India and met the representatives of different political parties. However, no satisfactory solution was found regarding the constitutional difficulties of the country. The mission was of the view that a Constituent Assembly would be established to frame the Constitution as well as an interim government would be set up. On June 6, 1946, the Muslim League accepted the plan, but maintained its rights and was determined for a separate Muslim state. The Congress also partially accepted the plan. The Cabinet Mission and the Viceroy, however, announced on May 16 1946, stating that as no agreement had been reached, immediate arrangements should be made and an Interim Government be set up until the new constitution could be brought into being.

The All-India Congress Committee met in Bombay on 6 July 1946. The Congress working committee`s resolution accepting the cabinet mission plan was submitted for ratification. Although, this was strongly opposed by the leaders of the socialist party nevertheless, the influence of Gandhiji and of the working committee prevailed and thus the resolution was ratified. Nehru was the Congress president during that time. According to Nehru the two major provisions laid down by the Mission were proper arrangements for minorities and a treaty between India and England. Thus the main task of the mission was to try to bring the leaders of the principle Indian political parties to agreement on these two matters: namely the method of framing a constitution for a self-governing, independent India. Another point was the setting up of a new Executive Council or interim government that would hold office while the constitution was being hammered out.

A resolution was then drafted by the Working Committee which was put before the Council. According to the resolution, the League had been influenced by the assurance given to its President that there would be five members each belonging to the Congress and the League in the Interim Government, together with two members representing the minorities. On July 22, 1946, Lord Wavell requested separately to Nehru and Jinnah. He asked them whether the Congress and the Muslim League would be prepared to enter an Interim Government on the basis that six members (that included one Scheduled Caste representative) would be nominated by the Congress and five members by the Muslim League. In addition to that the Viceroy would nominate three representatives of the minorities. A Communique was issued, stating that the interim government would be installed on September 2.

The main points regarding the Interim Government put forth by the Viceroy included:

The interim Government will consist of 14 members;

Six members to include one Scheduled Caste representative will be nominated by the Congress; Five members will be nominated by the Muslim League;

Three representatives of minorities will be nominated by the Viceroy. One of the seats will be kept for a Sikh. It will not be open to either the Congress or the Muslim League to object to the names submitted by the other party, provided they are accepted by the Viceroy

Distribution of portfolios will be decided after the parties have agreed to enter the Government and have submitted their names. The Congress and the Muslim League will each have an equitable share of the most important portfolios.

However, according to Jinnah`s statement the proposal was not acceptable to the Muslim League because it destroyed the principal of parity. Although, Jinnah met Nehru on this issue, yet they could not come to an agreement. Thus, the negotiations with the League reached a deadlock and the Viceroy decided to form an Interim Government only with the Congress, keeping options for the Muslim League open.

Apart from Jinnah`s opposition, the Government was suffering from anxiety as communal tension had increased in the towns as a result of the Muslim League`s call for `direct action`. The decision of the Muslim League to observe 16 August as `Direct Action Day` was followed mass processions by the Muslims and the holding of meetings in almost every big town. In continuation, there was unmatched act of mass destruction and loss of life in Calcutta. The day since 16 August, riot, murder and arson involved heavy damage to life and property. Thus, a Commission set up under the chairmanship of Sir Patrick Spens, the Chief Justice of the Federal Court, to inquire into the communal rioting in Calcutta, was later wound up in consequence of the partition of the country.

Furthermore, just after making the announcement on the formation of an interim Government, the Viceroy went to Calcutta to acquaint with the tragic happenings in the city. Thus, he came to the decision that certain sort of agreement between the two major communities was necessary to brought about soon. Moreover, the problem of objection of Sikhs also prevailed.

As decided, the Interim Government was formed at the Centre on September 2, 1946 and the Congress took over the charge. The armed forces were predominantly Hindu and Sikh and the other Indian members of the services were also largely Hindu. Consequently, the formation of an Interim Government consisting only of the Congress nominees also initiated communal inferno. According to the Muslims, the formation of the Interim Government was an unconditional surrender of power to the Hindus, and moreover, the Muslims feared that the Governor General would be unable to prevent the Hindus from using their newly acquired power of suppressing Muslims all over India.

The Viceroy and Nehru proceeded with further discussions in regard to the strength and personnel of the interim Government. Nehru wanted to increase the strength to fifteen by the inclusion of an Anglo-Indian, but the Viceroy was disinclined to any increase that would make it difficult for the Muslim League to join the government. It was ultimately decided to keep the strength at fourteen. The names of six Congressmen, a Sikh, an Indian Christian and a Parsi, as well as three out of five Muslims, were agreed upon.

However, Lord Wavell was unhappy at the situation of Congress purely handling the Interim Government. He genuinely desired a Hindu-Muslim settlement and united India. Wavell appealed to Nehru and Gandhi to persuade Jinnah to cooperate if they could give him an assurance that the Congress would not insist on nominating a Nationalist Muslim. But unfortunately, both Nehru and Gandhi refused to give way on that issue. Wavell informed Jinnah on 2nd October that his persuasion have failed to secure any concession from the Congress over the Nationalist Muslim issue. Thus Jinnah realized that the Congress would not give up the right to nominate a Nationalist Muslim and that he would have to accept the position if he did not wish to leave the interim government solely in the hands of the Congress. Wavell also wanted the fair and unconditional distribution of portfolios and other issues to support the League in getting fair treatment. Jinnah did not enter into any argument on the Nationalist Muslim issue but put forward points on safeguard on major communal issues and the question of minorities. Finally, Jinnah agreed to summon his Working Committee as soon as possible and undertook to send the Viceroy a note setting out Jinnah`s Nine points.

On October 13, 1946 Jinnah wrote to Wavell that, the Muslim League would not agree with much that had happened. In the interests of the Muslims and other communities it would be serious therefore if the entire administration of the Central Government were in the hands of the Congress. The League had therefore decided to nominate five members for the interim government. On October 15, Jinnah gave the Viceroy the five names on behalf of the Muslim League. They were: Liaqat Ali Khan, I.I. Chundri-gar, Abdur Rab Nishtar, Ghazanfar Ali Khan and Jogendra Nath Mandal. Mandal belonged to the Scheduled Castes and was a minister in the Muslim League ministry of Bengal. As a result, in order to make places for these five nominees. The Congress decided that Sarat Chandra Bose, Sir Shafaat Ahmad Khan and Syed Ali Zaheer would retire from the interim Government.

Interim Government portfolios were announced on October 25, 1946. Members from the Muslim League were thus sworn in on October 26, 1946. The League though entered the interim government, yet Jinnah refrained from accepting office for himself. The League thus entered government but rejected both plans, and was allowed to appoint an equal number of ministers despite being the minority party. However, the coalition was unable to work and this resulted in a rising feeling within the Congress that independence of Pakistan was the only way that could avoid political chaos in the country.