Even as Gangadhar woos Moti Bai in a royal manner and wants her to join his dance school, a wounded Manu defeats George. As George and his colleagues flee the site of the joust, scores of patriotic villagers stop them. Nana asks them to fulfil their bet, but George refuses to do so. Though Tatya lets him go scot-free, Manu, with popular backing, makes George place a turban on the old man's head and honour him as promised. Vahini fears ruthless British vengeance for Manu's daring.