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Geographic Context
Nepal boasts a salt trade route to Tibet that has been in installment for many decades. This was significant to the economic well-being of the valley of Kathmandu. As the British East Indian Company had profited from Indian trade routes, Nepal’s trade routes were desirable to conquer.

Nepal was a relatively newly established nation that did not have well-established boundaries with lax enforcement around the supposed borders. In conjunction with its frustration with this, and its desire for the trade routes, the British East Indian Company declared war against Nepal known as the Anglo-Nepalese War from 1814 to 1816. Nepal’s advantage lied in their highly esteemed army of men known as the “Gurkhas” whom were also of interest to the Company. As a smaller and less developed country, Nepal eventually relented in the war and agreed upon a ceasefire under the terms and conditions of the Sugauli Treaty.

Article - I
There shall be perpetual peace and friendship between the Honourable East India Company and the King of Nepal.

Article - II
The Rajah of Nipal renounces all claim to the lands which were the subject of discussion between the two States before the war, and acknowledges the right of the Honourable Company to the sovereignty of those lands.

Article - III
The Rajah of Nipal hereby cedes to the Honourable the East India Company in perpetuity all the under-mentioned territories, viz-

First: – The whole of the lowlands between the Rivers Kali and Rapti.

Secondly: – The whole of the low lands (with the exception of Bootwul Khass) lying between the Rapti and the Gunduck.

Third:– The whole of the lowlands between the Gunduck and Coosah, in which the authority of the British Government has been introduced, or is in actual course of introduction.

Fourth:– All the low lands between the Rivers Mitchee and the Teestah.

Fifth:– All the territories within the hills eastward of the River Mitchee including the fort and lands of Nagree and the Pass of Nagarcote leading from Morung into the hills, together with the territory lying between that pass and nagerr. The aforesaid territory shall be evacuated by the Gurkha troops within forty days from this date.

Article - IV
With a view to indemnify the Chiefs and Barahdars of the State of Nipal, whose interests will suffer by the alienation of the lands ceded by the foregoing Article, the British Government agrees to settle pensions to the aggregate amount of two lakhs of rupees per annum on such Chiefs as may be selected by the Rajah of Nipal, and in the proportions which the Rajah may fix. As soon as the selection is made, Sunnuds shall be granted under the seal and signature of the Governor General for the pensions respectively.

Article - V
The Rajah of Nipal renounces for himself, his heirs, and successors, all claim to or connextion with the countries lying to the west of the River Kali and engages never to have any concern with those countries or the inhabitants there of.

Article - VI
The Rajah of Nipal engages never to molest to disturb the Rajah of Sikkim in the possession of his territories; but agrees, if any difference shall arise between the State of Nipal and the Rajah of Sikkim, or the subjects of either, that such differences shall be referred to the arbitration of the British Government by which award the Rajah of Nipal engages to abide.

Article - VII
The Rajah of Nipal hereby engages never to take of retain in his service any British subject, nor the subject of any European or American State, without the consent of the British Government.

Article - VIII
In order to secure and improve the relations of amity and peace hereby established between the two States, it is agreed that accredited Ministers from each shall reside at the Court of the other.

Article - IX
This treaty, consisting of nine Articles, shall be ratified by the Rajah of Nipal within fifteen days from this date, and the ratification shall be delivered to Lieutenant-Colonel Bradshaw, who engages to obtain and deliver the ratification of the Governor-General within twenty days, or sooner, if practicable. Done at Segowlee, on the 2nd day of December 1815. PARIS BRADSHAW, Lt. Col., P.A. Received this treaty from Chunder Seekur Opedeea, Agent on the part of the Rajah Nipal, in the valley of Muckwaunpoor, at half-past two o’clock p.m. on the 4th of March 1816, and delivered to him the Counterpart Treaty on behalf of the British Government.

Note
Nipal - Nepal

Bootwul - Butwal

Gunduck - Gandak

Coosah - Kushaha

Mitchee - Mechi

Teestah - Teesta River

Nagarcote - Nagarkot

Morung - Morang District

Sugowlee - Sugauli

Chander Seekur Opedeea - Chandra Shekhar Upadhya

Reasons the Treaty was Signed
Three of the main goals of the Company were to employ Nepal’s impressive army, establish a presence of supervision in the Nepali court, and utilise its trading routes to Tibet. Naturally, the decision to sign the treaty was not treated with full acceptance by the Nepali court and roused a large point of controversy. Bhimsen Thapa, Nepal’s prime minister at the time “realised that the best way to ensure Nepal’s continued freedom from interference was to grant the governor general’s basic desire, a secure and trouble-free border”. In attempts to mitigate the devastation to Nepal’s sovereignty and security, the treaty was signed.

From the British perspective, the bureaucratic efforts of colonising Nepal was impractical in comparison to placing its certain aspects under the British employment.

The British had decided that the prospective efforts that would go into the colonisation of Nepal was unjustified and that a treaty placing Nepal indirectly under British control was more practical.

Effects of the Treaty
The treaty stipulated that Nepal’s government structure be without external interference and that aside from the singular British residence in the Nepali court, their national affairs would not be compromised. In addition to the benefit of Nepal’s continued sovereign independence, an alliance was established between the two governments.

In an outreach after the settlement of the treaty, then King sent the following letter to the Company:

"I have comprehended the document under date the 8th of December 1816... which you transmitted relative to the restoration, with a view to my friendship and satifaction, of the Terai between the Rivers Coosa and Rapti to the southern boundary complete, such as appertained to my estate previous to the war. It mentioned that in the event of my accepting the terms contained in that document, the southern boundary of the Terai should be established as it was held by the Govt. I have accordingly agreed to the terms laid down by you, and herewith enclose an instrument of agreement, which may be satisfactory to you. Moreover, it was written in the document transmitted by you, that it should be restored, with the exception of the disputed lands and such portion of land as should, in the opinion of the Commissioners on both sides, occur fo rthe purpose of settling a boundary: and excepting the lands which, after the cessions of the Terai to the Honourable Company, may have have been transmitted by it to the ascertained proprietors. My friend, all these matters rest with you, and since it was also written that a view was had to my friendship and satisfaction with respect to certain Articles of the Treaty of Segowlee, which bore hard upon me, and which could be remitted, I am well assured that you have at heart the removal of whatever may tend to my distress, and that you will act in a manner corresponding to the advantage of this State and the increase of the friendly relations subsisting between the two Govt."

Moreover I have to acknowledge the receipt of the orders under the red seal of this State, addressed to the officers of Terai between the Rivers Gunduk and Rapti, for the surrender of that Terai, and their retiring from thence, which was given to you at Thankote, according to your request, and which you have now returned for my satisfaction."

In spite of the territories that Nepal lost to the East Indian Company, Bhimsen Thapa “realized that the best way to ensure Nepal’s continued freedom from interference was to grant the governor general’s basic desire, a secure and trouble-free border”. Another restriction who’s effect could be seen in the modern day is the promise of eternal and undisputed forfeit of the territories lost, as stipulated in article 6.

The Treaty’s Level of Success
The treaty saw three decades of peace following its implementation, however, other issues began to arise starting in 1840. "“An army mutiny over proposed pay reductions almost turned into an attack on the British residency because the soldiers were led to believe that the cuts had been forced on the Nepalese government by the British” in June 1840"This followed as a result of suspicions that arose in the Nepali court that its independence in internal government affairs was being infringed upon. Another incidence of alarm occured in 1842 during a debt lawsuit over an Indian Merchant, Kasinath Mull, the British resident in the Nepalese court, Brian Hodgson appeared hostile and assertive, implicating attempted control over the independence of decision in the court. Through these issues, the success of the treaty’s attempt to buffer tensions may still be debated.

Boundary Treaty of 1860
In 1857, Indian Mutiny began a rebellion which was declared the First War of Independence against British rule and was fought by the Indian army employed under the British. During this time, a division of the Gurkha soldiers was sent to the war in support of the British and aided in its success, establishing a friendlier form of diplomacy that ultimately called for a revision in the Sugauli Treaty that panned more positively in favor of Nepal’s independence and territorial integrity. This would be called the Boundary Treaty of 1860.