The second legislative assembly election for the Madras Presidency after the establishment of a bicameral legislature by the Government of India Act of 1935 was held in 1946.

The years after this election saw factionalism in Madras Congress party with divisions across regional (mainly Tamil and Andhra) and communal (Brahman and non-Brahman) lines.

The Congress government which had come to power in Madras Presidency in 1937 after winning the 1937 elections resigned in October 1939, protesting India's involvement in the Second World War.

[1][4][5] The years before the 1946 election saw a bitter struggle between C. Rajagopalachari (Rajaji) and K. Kamaraj for the leadership of Madras provincial Congress.

Rajaji's claim to leadership found strong support in a Provincial Congress Committee meeting held in Tirupparankundram on 31 October 1945.

The Congress high command sent Asaf Ali to Madras in an effort to mediate between the pro- and anti-Rajaji factions.

Kamaraj and Mudaliar wrote to the Congress high command protesting its interference in local politics and its preference of Rajaji.

Patel, who had worked hard to strengthen Rajaji's image, was enraged by his abrupt withdrawal and said, How could anybody support you, if you act like this?

The assembly consisted of 215 members who were further classified into general seats and those reserved for special communities and interests:[3][12] The Act provided for a limited adult franchise based on property qualifications.

The Andhra faction made up of 77 members, was further divided between the supporters of Prakasam and Bhogaraju Pattabhi Sitaramayya.

[18] Mahatma Gandhi and the National Congress leadership supported the selection Rajaji as Prime Minister of Madras Presidency.

Prakasam, Madhava Menon and Kamaraj, provincial presidents of Congress Committee in Andhra, Kerala and Tamil Nadu respectively were invited to New Delhi for negotiations.

[18][19] Kamaraj and Kerala Pradesh Congress Committee President K. Madhava Menon supported C. N. Muthuranga Mudaliar for the post of prime minister and were opposed to Prakasam's candidacy.

Rajaji and the Reform Group observed neutrality because of a prior agreement from 1937, which stipulated that the next Congress government would be headed by a member from Andhra.

Difference of opinion arose between Prakasam and Kamaraj over several issues including the inclusion of Madhava Menon in the cabinet.

Dissatisfaction with Prakasam's textile mill policies and his slow implementation of prohibition, lead to his fall.

Citing ill health as the reason, he wrote to Prime Minister Prakasam, requesting the acceptance of his resignation.

Venkata Ratnam holds ministerial responsibilities for Forests, Cinchona, Fisheries, and Village Industries.

Venkata Ratnam has been an active member of the Indian National Congress since 1920 and has faced imprisonment twice for political involvement.

On 21 March 1947, Omandur Ramaswamy Reddiar was selected as the prime minister supported by Kamaraj and the anti-Prakasam factional alliance.

In 1948, Prakasam sought re-election by contesting against Reddiar, who in addition to Kamaraj, was supported by other notable Andhra members such as N. Sanjeeva Reddy and Kala Venkata Rao.

Since Congress had an overwhelming majority in both houses of the Madras legislature it was able to send a large number of its members to the Assembly.