Manu rushes out of the house straight to the akhada (gymnasium) on her horse early in the morning. Nana Saheb is yet to hone his skills, but Manu impresses one and all when she defeats Tatyaguru. The Peshwa has been exiled to Bithur by the English who are increasing their stranglehold over India. An incident at a religious function leaves Manu disturbed. Her father tries to make her understand that the Peshwa's insult was caused by the fear of the cruel English.

The insult annoys Manu and when she witnesses the inhuman treatment of a stable hand by an Englishman, she punishes him with a whip. When Manu refuses to apologize, the Peshwa is forced to apologize to the Englishmen on Manu's behalf.