Both parties encamped near Jaunpúr, at the distance of two or three kos from each other, and skirmishes took place between them. Two or three English officers fell into the hands of the Mughals of the Nawáb's army, and this obliged the English to propose terms of peace through the Mughal chiefs, who at their request advised the Nawáb to accept the terms. Bení Bahádur, and some other short-sighted and ignorant people dissuaded him from liberating the English officers, and he would not agree to peace. This created enmity and disaffection in the minds of the Mughal chiefs against the Nawáb, and they accordingly entered into an understanding with the English, that if they delivered the Nawáb into the hands of the English on the day of battle, they should be rewarded with appointments in the provinces. The Nawáb, being apprised of this, was greatly alarmed, because the Mughals were the most powerful body in his army. When the armies prepared to engage, the Mughals stood aloof, and as the Nawáb's affairs were reduced to a desperate condition, and a battle could not be hazarded, he broke up his camp near Jaunpúr, and retreated towards Lucknow.

When he reached that place, Simrú* Gárdí, who was at the head of ten or twelve thousand Gárdí Telinga* soldiers; Gusáín Anúp Gir, who commanded several thousand horse; and 'Alí Beg Khán, Shitáb Jang, and Ághá Bákir, who, though Mughals, had not joined with the insurgents, hastened to meet the Nawáb. Najaf Khán, Muhammad 'Alí Khán, Ághá Rahím and other Mughal chiefs, went over to the English, and the rest of the army fled.

On the 9th of Sha'bán, A.H. 1178 (1 Feb. 1765), the Nawáb with his whole family, and all the property which he could collect, marched from Lucknow towards Bareilly, which belonged to Háfiz Rahmat Rohilla. On leaving Lucknow, the Nawáb encamped at báoli (well), near Rustam-nagar.

Nawáb Shujá'u-d daula, having reached Bareilly, which formed the ta'lúká of Háfiz Rahmat Rohilla, left his family there with Simrú Gárdí, who was at the head of several thousand horse and foot soldiers. He himself proceeded to Garh Muktesar, which is situated on the banks of the Ganges, thirty kos from Sháh-Jahánábád. He met there the chiefs of the Mahratta army, and made an alliance with them. Having returned thence, he came to Farrukhábád. Gusáín Anúp Gir, who was a great general and one of the oldest servants of the Nawáb, quarrelled with him while encamped on the banks of the Ganges near Garh Muktesar, on account of the pay of his regiments, and having deserted him, went over to Jawáhir Singh, son of Súraj Mal Ját.

When Nawáb Shujá'u-d daula arrived at Farrukhábád, he requested Ahmad Khán and Muhammad Khán Bangash, Háfiz Rahmat, Dúndí Khán, Najíb Khán, and other Rohilla and Afghán chiefs, to lend him their aid; but through fear of the English they all refused to accompany him. Gházíu-d dín Khán 'Imádu-l Mulk, who was in those days with Ahmad Khán at Farrukhábád, accompanied Shujá'u-d daula from Farrukhábád to the Mahrattas at Kora. The Mahrattas went with them to the ferry of Jájmau, on the banks of the Ganges. The English left Alláhábád, and came to the same place, when Nawáb Shujá'u-d daula, Gházíu-d dín Khán and the Mahrattas resolved to oppose them.

After an obstinate battle, the army of the Mahrattas took to flight, and having plundered on their way the city of Kora, arrived at Kálpí. Gházíu-d dín, with a few men, fled to Farrukh-ábád. Shujá'u-d daula, disappointed in obtaining help and assistance in every quarter, determined to venture alone to the English, and make peace with them, rather than wander from place to place in a state of embarrassment. He accordingly came unattended to Jájmau, where the English had encamped. When he approached the camp, and the English were informed of his coming, their chiefs, who were very polite and affable, immediately came out of their tents, and proceeded on foot to meet him. They showed him great hospitality and respect, and, accompanying him to their tents with due honour, promised to restore to him the provinces which had been in his possession, and told him that he was at liberty to place his family wherever he liked. The Nawáb, having taken his leave from the English, pitched his tents at the distance of four kos from theirs. He summoned his family from Bareilly, and sent them to Lucknow.

Simrú, commander of the Gárdí regiment, who was now in the service and in charge of the family of the Nawáb, had been formerly in the employ of the English; and, taking some offence at them, had entered the service of Kásim 'Alí Khán, Governor of Bengal, and when the Khán was ruined, had entered at Baksar into the service of Nawáb Shujá'u-d daula. As peace was now made, the English demanded his surrender by the Nawáb; but the Nawáb, respecting his bravery and courage, did not consider it proper to comply, but dismissed Simrú from his service. Simrú, who was coming with the family of the Nawáb from Bareilly to Lucknow, learnt the news of his dismissal on the way. On this he petitioned for the arrears of his pay, and resolved to take severe measures in the event of refusal. The Nawáb Begam, mother of Nawáb Shujá'u-d daula, and Bení Bahádur, paid him what was due to him near Sháhábád, and then dismissed him. Having received his pay, he went to Jawáhir Singh Ját at Díg and Kumbher. The family of the Nawáb, with the Khánam Sáhiba and others, arrived at the báoli (well), near Lucknow, on the 9th Muharram, A.H. 1179 (28 June, 1765 A.D.), and pitched their tents there.

As by this time the Nawáb, in company with the English, had reached Phúphámau, near Alláhábád; his family followed him to the same place. * * But the English intimated to him that he should leave the ladies of his family at Faizábád, and himself accompany them to Maksúdábád, where their chief resided. The Nawáb acted according to their request, and, having embarked in a boat, accompanied them to that city by water, with only a few attendants. When an interview took place between the English and the Nawáb on the way between 'Azímábád and Maksúd-ábád, they showed him great hospitality and kindness, and wrote him a letter, in which they restored to him both the provinces which had been in his possession. They took from him the district of Alláhábád, with several other maháls, the annual revenue of which amounted altogether to twelve lacs of rupees, and also the district of Kora, and they gave these places to Sháh 'Álam Bádsháh. They also promised to pay the Emperor annually a sum of fifty lacs of rupees on account of the provinces of Bengal and 'Azímábád, and having placed their officers in the fort of Alláhábád, they erected a factory there. From the 13th of Rabí'u-l awwal, A.H. 1179, the Nawáb's rule was again established in the provinces of Oudh and Alláhábád.* The Emperor took up his residence in Sultán Khusrú's garden at Alláhábád. The English garrisoned the fort of Alláhábád, and erected a factory in Benares. Mr. Hooper was appointed Resident at the Court of the Nawáb.