The outbreak of the Seven Years' War in Europe in 1756 resulted in renewed conflict between French and British forces in India. The Third Carnatic War spread beyond southern India and into Bengal where British forces captured the French settlement of Chandernagore  in 1757. However, the war was decided in the south, where the British successfully defended Madras, and Sir Eyre Coote decisively defeated the French, commanded by Comte de Lally at the Battle of Wandiwash in 1760. After Wandiwash, the French capital of Pondicherry fell to the British in 1761. The war concluded with the signing of the Treaty of Paris in 1763, which returned Chandernagore and Pondichéry to France, and allowed the French to have "factories"  in India but forbade French traders from administering them. The French agreed to support British client governments, thus ending French ambitions of an Indian empire and making the British the dominant foreign power in India.. What happened second: captured the French settlement or the Battle of Wandiwash?