Continued encroachments by the Nepalese in the districts of Saran [Champaran], Gorakhpur, and Kumaon - decision of the Bengal Government to commence hostilities against them (Vol 1).
Major James Mouat is suspended the service for having attempted to sell an English horse to the Nawab of Bengal [Zainuddin Ali Khan] for the exorbitant sum of one lakh of rupees (includes Mouat's printed memorial praying to be restored to the service, pp 395-434).