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Why did the Muslim League call for ‘Direct Action Day’ on August 16th, 1946?
A. It wanted to hasten the process of partition.
B. It wanted to teach Congress a lesson.
C. It was unable to resolve difference over the formation of Coalition Interim Government
D. Both A and B

Answer
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Hint: It occurs after Cabinet mission plan 1946. In 1946, the Cabinet Mission was proposed to India by the British government to discover a goal to the contention between the Indian National Congress (INC) and the Muslim League on the issue of freedom or gaining independence. The two gatherings were the biggest in India's Constituent Assembly

Complete answer:
Muslim League called for ‘Direct Action Day’ on August 16, 1946 because it was unable to resolve differences over the formation of a coalition Interim Government. Direct Action Day, also called 1946 Calcutta Killings, was a day of vast communal revolting among Muslims and Hindus in the city of Calcutta in the Bengal territory of British India. The League needed a different country for the Muslims they called Pakistan while the INC needed a unified India. The Mission was not fruitful since the League and the Congress could not agree on the point of a unified India. Since the Mission failed, the Muslim League reported 16th August as Direct Action Day and required a general hartal( Strike) to fight the INC's stand and request fervently a different country.
So, the correct answer is option C.

Note: The Muslim League and the Indian National Congress were the two biggest ideological groups in the Constituent Assembly of India during the 1940s. The Muslim League had requested, since its 1940 Lahore Resolution, that the Muslim-greater part territories of India in the northwest and the east should be established as 'Independent states'.