First Anglo Maratha War 1779
The Maratha force was joined by Mahadji Shinde, the “most celebrated & Brave Maratha” after Shivaji. The combined Maratha forces fought with the forces of the British and Raghunath Rao at Wadgaon.
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Mahadji Shinde and Tukojirao Holkar commanded the Maratha army.
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In this battle the British were badly defeated. The British Forces surrendered at Wadgaon in 1779, on January 12.
4 days later on January 16, the British signed a treaty of Wadgaon as per the terms of the Marathas. As per this treaty, the British relinquished all the territories acquired by the East India Company in Western India since 1773 and promised to pay Rs. 41 thousand as indemnity to Mahadji Scindia. Raghunathrao was captured and imprisoned.
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But this Treaty of Wadgaon was held invalid by Warren Hastings, who quoted that the Presidency of Bombay had no legal power to sign such treaty.
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The Calcutta Presidency sent another force which harassed Mahadji at Sipri.
Accordingly a new treaty called “Treaty of Salbai” was signed between the British and the Marathas.