Under the new Act of 1935 the Government announced to hold elections to the provincial legislative assemblies in 1936-37. There were 1771 seats of the provincial assemblies which were to be filled by these elections. Although both Muslim League and the Congress had rejected the Act of 1935, but still they decided to contest the elections. Both Muslim League and the Congress issued their manifestoes. The Muslim League laid down two main principles on which its elected representatives would work:-

1. "The present provincial constitution and proposed central constitution should be replaced by a system of self-government;
2. In the meantime the representatives of the Muslim League would sincerely work to get the maximum benefits out of the present constitution".

The Congress too, came forward with somewhat similar slogans of public welfare, freedom and liberty and for the release of the political prisoners. The results of the elections were shocking for the Muslims of India and for the Muslim League as well, which could not get mentionable support from the voters. Congress achieved a big victory and managed to get clear majority in five provinces. The Muslim League managed to get few seats in the Muslim minority provinces and failed in the Muslim majority areas.