• The Gorkhas wrested control of Nepal from the successors of Ranjit Malla of Bhatgaon in 1760. They began to expand their dominion beyond the mountains. They found it easier to expand in the southern direction, as the north was well defended by the Chinese.
• In 1801, the English annexed Gorakhpur, which brought the Gorkhas’ boundary and the Company’s boundary together. The conflict started due to the Gorkhas’ capture of Butwal and Sheoraj in the period of Lord Hastings (1813-23). The war ended in the Treaty of Sagauli, 1816, which was in favour of the British.

As per the Treaty,

• Nepal accepted a British resident.
• Nepal ceded the districts of Garhwal and Kumaon, and abandoned claims to Terai.
• Nepal also withdrew from Sikkim.

This agreement brought many advantages to the British —

• The British empire now reached the Himalayas;
• It got better facilities for trade with Central Asia;
• It acquired sites for hill stations, such as Shimla, Mussoorie and Nainital; and the Gorkhas joined the British Indian Army in large numbers.