Luso-Maratha War began from early 1737 and continued for the almost two years until May 1739. The war displayed the Portuguese defenders` worthiness and also earned themselves such praise that from then onwards brave fighters gained the title `Warriors like the Portuguese`.

After conquering many fortresses in the north, in 1739 the Marathas sent a huge force against Goa. The forced could successfully block the borders of Bassein from the capital. Margao and Rachol were captured and the nuns and priests were forced to vacate from Goa to the fortress of Marmagao.

The defense of Bassein and some of the northern fortresses by Portuguese impressed the Marathas to such an extent that they agreed to peace talks, which were signed in May 1739. Goa lost their Province of the North leaving apart the port of Daman in lieu of the return for the withdrawal of the Maratba forces from the remaining Goan territory. They also agreed to pay a huge war security, which actually handicapped the whole state and its population. The whole affair resulted in a complete disaster and disorder.

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