Before his death, Aurangzeb left a will by which he partitioned the Empire among his three surviving sons, but in spite of that, a bitter fratricidal war took place among them. Prince Muazzam was the eldest son of Aurangzeb and he was the Governor of Kabul and the Punjab. Mohammad Azim was the second son and he was the Governor of Malwa and Gujarat. Kam Baksh was the third son and he was the Governor of the Deccan.

Prince Muazzam heard the news of the death of his father when he was at Jamrud and he rushed to Delhi to contest for the throne. He was assisted by Munim Khan. Mohammad Azim hurried to Agra and occupied the throne. Muazzam reached Agra in June 1707 and occupied the fort and took into possession about Rs. 25 crores. He declared himself Emperor and took up the title of Bahadur Shah I. Mohammad Azim was defeated and killed on 18 June, 1707. Kam Baksh was also defeated and killed.

When Bahadur Shah ascended the throne, he was more than 63 and he had passed the age when he could be expected to show initiative in any work. He was a man of mild and equitable temper, learned, dignified and generous. He was incapable of saying no to anybody and his idea of statesmanship was to let matters drift and patch up a temporary peace by humoring everybody, without facing issues and saving future trouble by making decisions promptly and courageously. Though he did not suffer from any vice, his complacency and negligence earned for him the title of Shab-i-Beckhabar (Heedless King). It was during his reign that intrigues began to increase at the royal court and he felt that he was too weak to suppress them.

Bahadur Shah had to deal with many problems. Regarding the Marathas, he released Sahu, the son of Sambhaji and grandson of Shivaji. Sahu was released on the suggestion of Zulfikar Khan. He was given the right of Chauth and Sardeshmukhi of the six provinces of the Deccan.

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The money was to be collected by the Mughal Officers and handed over to Sahu. The release of Sahu was a great diplomatic move. It started rivalry among the Marathas. Tara Bai, widow of Raja Ram, contested the claim of Sahu to the throne. There was a civil war among the Marathas and that kept them busy during the Reign of Bahadur Shah.

As regards the Rajputs, Bahadur Shah followed a policy of conciliation towards them. He abolished Jajiya and acknowledged the independence of Mewar and Marwar. Friendly relation was established with the Raja of Amber. It is possible that Bahadur Shah would not have granted these terms to the Rajputs if the Sikhs had not revolted in the Punjab and given a lot of trouble to the Mughals.

Bahadur Shah had to deal with the Sikhs in the Punjab. Under the leadership of Guru Gobind Singh, the Sikhs had carried on a fierce struggle against Aurangzeb, but after his death, Bahadur Shah became very friendly with the Sikh Guru. It is said that Guru Gobind Singh even accompanies Bahadur Shah in his Southern Expeditions. After the death of the Guru Gobind Singh in 1708, Banda Bahadur assumed the military leadership of the Sikhs.

He collected thousands of Sikhs from different parts of the Punjab to fight against the Muslims and captured Kaithal, Samana, Shahabad, Ambala, Kapwri and Sadhura. His greatest victory was against Wazir Khan, Governor of Sarhind, whom he defeated and killed. After a wholesale massacre of the Muslim population of Sarhind, Banda Bahadur captured Saharanpur.

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Thus, the entire territory between the Sutlej and Jamuna passed into the hands of the Sikhs. The Sikh Forces reached the outskirts of Delhi and took to plunder. Bahadur Shah decided to proceed against them personally with the help of Amin Khan. He besieged Banda Bahadur in the Fort of Lohgarh which was captured in November 1710. Bahadur Shah recovered Sarhind and other territories captured by the Sikhs. However, Banda Bahadur managed to escape to the hills and continued to trouble the Mughal Emperor. Bahadur Shah died on 27 February, 1712.

Sidney Owen writes about Bahadur Shah. “He was the last Emperor of whom anything favorable can be said. Henceforth, the rapid and complete abasement and practical dissolution of the Empire are typified in the incapacity and political insignificance of its sovereigns.”