The Second World War finally came to an end in August, 1945. Labour party returned to power with clear majority in the general elections in England in July, 1945. The Congress leaders, who had cultivated close relations with the leaders of Labour Party, felt elated at this unexpected turn of events.
The Congress leaders expected support from the Labour Party because the Labour Party had favoured the united pattern of India as a single administrative and political entity. It was the main cause of dispute between the Congress and the Muslim League. The general elections to the provincial and central legislatures were held in India in 1945-46.
Both Congress and Muslim League contested these elections. The Muslim League won all the Muslim seats in central assembly and 446 out of 495 Muslim seats in the Provincial Assemblies. The Congress formed a Ministry in the N.W.F.P (now Khyber Pakhtunkhwa ) with Dr. Khan Sahib as the Chief Minister.