Hyder Ali became dalwai Dalavayi of Mysore by force in 1761 displacing the Wodeyar Dynasty which had previously ruled the Kingdom.
The humiliation of the Treaty (coupled with the recent loss of the Thirteen Colonies, in America) made the British determined to defeat Tipu.
TREATY Honourable the English East India Company and the Nawab Tipu Sultan Bahadur, on his own behalf; for the countries of Seringapatam Hyder Nagur etc.
and all his other possessions settled by Anthony Sadlier, George Leonard Staunton and John Hudleston Esquires, on behalf of the Honourable English East India Company for all their possessions, and for the Carnatic Payen Ghaut, by virtue of powers delegated to the Right Honourable the President & Select Committee of Fort St. George for that purpose, by the Honourable the Governor General & Council appointed by the King & Parliament of Great Britain, to direct & controul all political affairs of the Honourable English East India Company in India, by the said Nawab agreeably to the following Articles, which are to be strictly and invariably, observed as long as the Sun & Moon shall last, by both parties, that is to say, by the English Company & the three Governments of Bengal, Madras, and Bombay, and the Nawab Tipu Sultan Bahadur.
Article 2nd.—Immediately after signing and sealing the Treaty by the Nawab Tipu Sultan Bahadur and the three English Commissioners, the said Nawab shall send orders for the complete evacuation of the Carnatic, and the restoration of all the forts and places in it, now possessed by his troops, the forts of Amboorgur and Satgur excepted; & such evacuation and restoration shall actually & effectually be made in the space of thirty days from the day of signing the treaty, and the said Nawab shall also immediately after signing the treaty send orders for the release of all the persons who were taken & made prisoners in the late war, and now alive, whether European or Native, and for their being safely conducted to & delivered at such English Forts or Settlements, as shall be nearest to the places where they now are, so that the said release & delivery of the prisoners shall actually & effectually be made in thirty days from the day of signing the Treaty; the Nawab will cause them to be supplied with provisions and conveyances for the journey, the expense of which shall be made good to him by the company.
The Nawab Tipu Sultan Bahadur will cause the troops in those places to be supplied with provisions and any other necessary assistance for their voyage to Bombay (they paying for the same).
The Commissioners will likewise give at the same time written orders for the immediate delivery of the forts & districts of Caroor, Avaracourchy, & Daraporam; and immediately after the release and delivery of the prisoners, as before mentioned, the fort and district of Dindigul shall be evacuated & restored to the Nawab Tipu Sultan Bahadur, and none of the troops of the Company shall afterwards remain in the country of the Nawab Tipu Sultan Bahadur.
Article 4th.—As soon as all the prisoners are released and delivered, the fort & district of Cananore shall be evacuated and restored to Ali Rajah Biby, the Queen of that country, in the presence of any one person, without troops, whom the Nabob Tipu Sultan Bahadur may appoint for that purpose, and at the same time that the orders are given, for the evacuation and delivery of the forts of Cananore and Dindigull, the said Nabob shall give written orders for the evacuation, and deliver of Amboorgur and Satgur to the English, and in the meantime none of the troops of the said Nawab shall be left in any part of the Carnatic, except in the two forts above mentioned.
Article 9th.—The Nawab Tipu Sultan Bahadur shall restore the factory and privileges possessed by the English at Callicut until the year 1779 (or 1193 Heggra) and shall restore Mount Dilly & its district, belonging to the settlement of Tellicherry and possessed by the English, till taken by Sadar Cawn, at the commencement of the late war.
In testimony whereof, the said contracting parties have signed, sealed, and interchangeably delivered two instruments of the same tenor and date, to wit, the said three Commissioners on behalf of the Honourable English East India Company, and the Carnatic Payen Ghaut, and the said Nawab Tipu Sultan Bahadur on his own behalf, and the dominions of Seringapatam and Hyder Nagur & ca.