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The muslim league met in lahore and declared that a seprate state would now be its major aim.
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In 1942 britian desperate because Japan and Germany seemed headed for complete victory in WW II
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Wavell offered the indian government total power with the viceroy as merely a ceremonical head of state.
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Britain was desperate to resolve the situation and send three senior ministers to have long discussions with Gandhi,Nehru,Jinnah,Ambedkar(leader of the scheduled casts)and the sardar Baldev singh(leader of the sikhs.
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The British parliament passed this act to give legal force to the division of India into two dominations.