The Congress had accepted the Cabinet Mission Plan but rejected the proposal for the formation of an interim government. Therefore, the Muslim League claimed that an interim government of India should be formed by leaving the Congress, but the Viceroy refused to form an interim government leaving the country's largest party.
When the Muslim Council rejected the Cabinet Mission plan at the Bombay-meeting on 27 July 1946, the Congress made another move. He called a meeting of the Congress Working Committee on 8 August 1946 and passed a resolution in it that the Congress fully accepts both the long-term plan of the Cabinet Mission and the Interim Government Plan.
Viceroy Lord Wavell wanted the Interim Government to be formed if both the Congress and the Muslim League parties agreed, but the Muslim League did not agree to join the Interim Government. In August 1946, Prime Minister Attlee sent a personal telegram to the Viceroy Lord Wavell, directing that an interim government be formed without the Muslim League.
Lord Wavell sent an invitation to Jawaharlal Nehru to form the government, in which it was said- 'Propose the formation of an interim government before me. …… it is for you to decide whether you want to talk about it to Mr. Would you like to discuss with Jinnah or not? ..... I am sure you will agree with me that a coalition government can best guide India's destiny at this critical time. We have very little time.'
Nehru accepted his invitation by writing a letter to the Viceroy from Wardha on 10 August 1946 and on 13 August 1946 wrote a letter to Jinnah requesting him to join the government and seeking an appointment with him.
Jinnah sent the reply to Jawaharlal's letter in this way- 'Neither do I know what khichdi has been cooked between you and the Viceroy, nor do I know of any agreement between you. , If it means that the Viceroy has entrusted you with the responsibility of setting up an Executive Council…..and he has agreed to accept your opinion and take action based on it, then it is not possible for me to accept this position. …… But if you want to meet me to resolve the impasse on the Hindu-Muslim question, I am ready to meet you today at 6 pm.’
Finally, on 15 August 1946, talks between Nehru and Jinnah took place at Jinnah's residence. In this negotiation, Jinnah refused to include members of the Muslim League in Nehru's interim government. After this meeting, Nehru informed Wavell that Nehru had assured Jinnah that no major communal issue would be taken up in the Constituent Assembly unless a majority of both sides agreed to it.
Any contentious issue will be referred to a federal court for adjudication and although the Congress dislikes the idea of constituent groups of provinces and prefers the settlement of autonomous provinces under the Centre, if the provinces so desire, that constituent- Would not oppose forming a group. Jinnah's 'No' to Jawaharlal Nehru meant only one thing - 'Slaughter of Hindus through direct action in Bengal.'