Malatti's father has unexpectedly survived the fall from the train and now vows to take cruel revenge on McAllan. In Lhasa, the old capital of Tibet, seat of the Dalai Lama and at the same time a "forbidden city" for all foreigners, there is another dramatic encounter between the engineer and Badhama. In a dark dungeon, he thinks he recognizes McAllan and tries to stab the man he holds responsible for all the misfortune. He does not realize who he is stabbing, killing his own daughter in the process. The Dalai Lama's servants arrest Badhama and throw him in the dungeon. Malatti's father is sentenced to death, while McAllan sees the light of day again and is released.

The old man and McAllan then got into a physical altercation on the roof of a train that was moving at full speed, in which Malatti's father fell. McAllan assumes that his adversary died in the process. When a gang of rogue robbers board the train, McAllan's life doesn't seem worth a damn anymore. But then, almost out of nowhere, his faithful servant Lubzang appears and saves his master's life at the last moment. Malatti, also on board, falls into the clutches of the gang and is sent to Tibet by the sinister fellowsabducted to be offered as a sacrifice to the goddess Bhawani. However, a kind-hearted member of the gang of robbers takes pity on her and helps the exotic beauty to escape. A little later, Malatti meets Lubzang, who has meanwhile broken away from his master McAllan. He takes her with him.

The American engineer McAllan is appointed site manager for a major project in Asia. He is to oversee the branch line of the railway line from Calcutta to Beijing. One day, the railway company in question called him to Calcutta for an interview: they were planning to stop running the branch line for cost reasons. However, McAllan is passionate about the project and uses all his powers of persuasion not to just call off construction. In fact, the construction work will continue, and the engineer is even willing to vouch for it with his private fortune.