Leader of the Muslim League
Prominent Muslim leaders like the The Aga Khan, Choudhary Rahmat Ali and Sir Muhammad Iqbal made efforts to convince Jinnah to return from London (Where he had moved to in 1931 and planned on permanently relocating in order to practice in the Privy Council Bar.) to India and take charge of a now-reunited Muslim League. In 1934 Jinnah returned and began to re-organise the party, being closely assisted by Liaquat Ali Khan, who would act as his right-hand man. In the 1937 elections to the Central Legislative Assembly, the League emerged as a competent party, capturing a significant number of seats under the Muslim electorate, but lost in the Muslim-majority Punjab, Sindh and the North-West Frontier Province. Jinnah offered an alliance with the Congress - both bodies would face the British together, but the Congress had to share power, accept separate electorates and the League as the representative of India's Muslims. The latter two terms were unacceptable to the Congress, which had its own national Muslim leaders and membership and adhered to secularism. Even as Jinnah held talks with Congress president Rajendra Prasad, Congress leaders suspected that Jinnah would use his position as a lever for exaggerated demands and obstruct government, and demanded that the League merge with the Congress. The talks failed, and while Jinnah declared the resignation of all Congressmen from provincial and central offices in 1938 as a "Day of Deliverance" from Hindu domination, some historians assert that he remained hopeful for an agreement.
In a speech to the League in 1930, Sir Muhammad Iqbal mooted an independent state for Muslims in "northwest India." Choudhary Rahmat Ali published a pamphlet in 1933 advocating a state called "Pakistan". Following the failure to work with the Congress, Jinnah, who had embraced separate electorates and the exclusive right of the League to represent Muslims, was converted to the idea that Muslims needed a separate state to protect their rights. Jinnah came to believe that Muslims and Hindus were distinct nations, with unbridgeable differences—a view later known as the Two Nation Theory. Jinnah declared that a united India would lead to the marginalization of Muslims, and eventually civil war between Hindus and Muslims. This change of view may have occurred through his correspondence with Iqbal, who was close to Jinnah. In the session in Lahore in 1940, the Pakistan resolution was adopted as the main goal of the party. The resolution was rejected outright by the Congress, and criticised by many Muslim leaders like Maulana Abul Kalam Azad, Khan Abdul Ghaffar Khan, Syed Ab'ul Ala Maududi and the Jamaat-e-Islami. On July 26, 1943, Jinnah was stabbed and wounded by a member of the extremist Khaksars in an attempted assassination.
Muhammad Ali Jinnah founded Dawn in 1941, a major newspaper that helped him propagate the League's point of views. During the mission of British minister Stafford Cripps, Jinnah demanded parity between the number of Congress and League ministers, the League's exclusive right to appoint Muslims and a right for Muslim-majority provinces to secede, leading to the breakdown of talks. Jinnah supported the British effort in World War II, and opposed the Quit India movement. During this period, the League formed provincial governments and entered the central government. The League's influence increased in the Punjab after the death of Unionist leader Sikander Hyat Khan in 1942. Gandhi held talks fourteen times with Jinnah in Bombay in 1944, about a united front—while talks failed, Gandhi's overtures to Jinnah increased the latter's standing with Muslims