So in 1778, Hyder's vassal, the Raja of Chirakkal, besieged Thalasseri and enforced an economic blockade under order from Hyder himself. The British factories at Talassery armed Pazhassi Raja's men to enable them to recover Kottayam from the Mysorean occupation army. This move by the British ensured that the Chirakkal army was now at risk of being struck in the rear by Pazhassi Raja's force. The Chirakkal troops began to retreat, but Pazhassi chased and devastated the Chirakkal army, and then marched to Kottayam where he obliterated the Mysorean occupation and overran all of western Kottayam. But at this critical moment when the Mysorean army in Malabar could have been destroyed by a joint action on the part of the British and the Rajas, the British factories at Talassery were instructed by the Governor not to upset the nominal peace with Hyder.