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The Company, however, gradually established factories and acquired territories in India and for the protection of its territories and for further acquisition, it was empowered to raise an army, make war and peace and exercise governmental functions. It subsequently obtained the grant of Diwani of Bengal, Bihar and Orissa from the Emperor Shah Alam in 1765.
[See the full post at: Evolution of the system of Courts in India: Post 1600]
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