This was done essentially because both India and Pakistan claimed the state of Jammu & Kashmir. The big powers, like the US and Britain, did not want to take sides and might have felt that it would be best if the problem of the state could be settled between India and Pakistan. India wants to settle the problems once and for all. But Pakistan will only accept a solution under which it can keep the Kashmir Valley to itself. India cannot allow this. Therefore, the so-called "dispute" continues to this day.
But kashmiri people want to an independent kashmir