French Governor Dupleix began to increase his power by interfering in local dynastic politics in South India. He got the opportunity in the dynastic disputes in Hyderabad and Carnatic.The establishment of Chanda Sahib an ally of French on the throne of Carnatic was bound to have adverse effect on English trade since the hinterland of Madras would be in the hands of their enemies. Governor Saunder sent Robert Clive with 200 European and 300 Indian soldiers to capture the capital of Carnatic, Arcot.
Chanda Sahib sent about half of his army under his son Raja Sahib to take back Arcot and Clive was besieged there. The timely arrival of Muran Rao a Maratha Chief enabled Clive to defeat Chanda Sahib. Chanda Sahib was forced to raise the siege of Trichinapally.
He was put to death by Raja of Tanjore. Thus Mohammad Ali became the nawab of Carnatic. Dupleix tried to recover his position but couldn’t do anything. He was recalled in 1754. Thus the French disaster at Trinchinapally sealed the fate of Dupleix. In 1754 Godeheu replaced him as the governor general. He began the negotiations for peaceful relations with the English and ended warfare with them in 1754 and signed the Treaty of Pondicherry.