They were monsoon days. Nilkantha Varni was advancing ahead after crossing the broad river Kosi. It was night, Varni preferred to live in the forest. He disliked living in a thickly populated part. So he decided to pass the night under a pipal tree in the forest. He spread the deerskin and stayed there. That place belonged to some Bhutnatha. Bhutnath was a dreadful man. He made people afraid of him, and he took delight in it.

He decided to frighten away Nilkantha Varni. So He began to shout dreadfully, but Varni was least frightened. Then he started throwing stones and brickbats upon Varni by remaining himself invisible, but this also had no effect on Varni. Not a single pebble reached Varni. Bhutnatha growled like a tiger, suddenly rushed forward like a bear, but no sooner did Varni look at it, there was complete peace. At last Bhutnatha has tired, he was defeated and fell at Varni's feet and implored: “Have mercy on me.!” Varni took pity on him He sent Bhutnatha to Badrikashrama. Then Varni had a peaceful night.