This story is described in Mahabharata, Adi Parva, Sambhava Parva.
When Pandavas and Kauravas have completed their education, Guru Drona has asked for preceptorial fee. He has asked for the capture of Drupada.
"Vaisampayana continued, 'Beholding the Pandavas and the son of Dhritarashtra accomplished in arms, Drona thought the time had come when he could demand the preceptorial fee. And, O king, assembling his pupils one day together, the preceptor Drona asked of them the fee, saying, 'Seize Drupada, the king of Panchala in battle and bring him unto me. That shall be the most acceptable fee.'
After hearing this, Kauravas and Pandavas had attacked on Panchal (Drupad's kingdom). First Kauravas had attacked but were defeated by Drupad.
And careering over the field of battle like a fiery wheel, king Drupada with his arrows smote Duryodhana and Vikarna and even the mighty Karna and many other heroic princes and numberless warriors, and slaked their thirst for battle. Then all the citizens showered upon the Kurus various missiles like clouds showering rain-drops upon the earth. Young and old, they all rushed to battle, assailing the Kurus with vigour. The Kauravas, then, O Bharata, beholding the battle become frightful, broke and fled wailing towards the Pandavas.
Then Pandavas had attacked on Drupad and army. Arjuna has captured Drupada and bring him to his
The king of the Panchalas, beholding his general thus discomfited in the encounter, himself began to shower his arrows upon the Pandava prince. Then Arjuna, that foremost of warriors, crowned with success, began to fight furiously, and quickly cutting his enemy's bow in twain as also his flagstaff which he caused to fall down, pierced his antagonist's horses, and charioteer also with five arrows. Then throwing aside his bow Arjuna took his quiver, and taking out a scimitar and sending forth a loud shout, leaped from his own chariot upon that of his foe. And standing there with perfect fearlessness he seized Drupada as Garuda seizeth a huge snake after agitating the waters of the ocean. At the sight of this, the Panchala troops ran away in all directions.