Hyder Ali land concessions in exchange for peace. The British countered with an aggressive list of demands that included payments of tribute to the Nizam and larger land concessions to the British East India Company. Hyder Ali specifically refused to deal with Muhammed Ali Khan Wallajah, his nemesis in the Carnatic. The negotiations failed to reach common ground. On 3 October, Hyder Ali, while moving his army from Guuramkonda back toward Bangalore, surprised a small garrison of Muhammed Ali Khan Wallajah's men at a rock fort call Mulwagal, near Ooscota. British reinforcements were sent, and Colonel Wood was able to recover the
Muhammed Yusuf Khan surviving there as the people there were kindly disposed towards Yusuf Khan; he had once saved Alwarthirunagari, a few years previously, from a Dutch invasion. As per Maasa's last wish, and to maintain secrecy, Srinivasa Rao named the boy Mathuranayagam (which was the original Hindu name of Yusuf Khan) and brought him up in the Christian faith (Maasa was a Christian). Yusuf Khan's descendants later moved to Palayamkottai. The recorded history on Muhammed Yusuf Khan seem to end with the incident of his hanging and there is no or only sketchy data on what happened to his family, after that.