An attorney named Murlidhar D. Pathak came to Baba on the 30th and said, "There is a very good place here for setting up an ashram. Please come with me to see it." The man was a friend of Jal Kerawalla (who had been posted to Mandla in 1937) and had heard that Baba was looking for a spot to establish a center. Pathak was told to return the next morning at 8:30, but was late. Baba canceled the appointment and he was just leaving the Circuit House, when the attorney arrived. Another appointment was given for 10:30, and this time Baba went with him and saw the spot. He liked it and instructed Jal to purchase 100 acres if the price was reasonable. Baba and the group then left for Jabalpur in two cars and a bus. Baba's car left at one in the afternoon, and arrived in Jabalpur at around three-fifteen.

That year, Time magazine named Gabriel Pascal as the leading figure in the film industry for 1938. Pascal informed Baba about this in a telegram, and stated: "I am glad that I have not failed your faith and prophecy. But this is only the beginning. I will create, as I promised, miracles through art."

On Sunday morning, 1 January 1939, Jal Kerawalla made a joke at Pappa's expense and Pappa became very upset. He drove straight to Baba's bungalow and complained bitterly. Jal and Chanji followed him, and Baba sent for them and asked the reason for the uproar. Jal replied, "Forgive me, Baba, I was only joking."

Pappa shouted, "Who has made him a magistrate? He has no sense! He should not be forgiven!"

Smiling, Baba spelled out, "I would not forgive Jal, but to forgive is my nature. If I don't forgive him, the world will collapse! Only by my forgiveness does the world continue, not otherwise!"

Pappa said, "You should continue forgiving the world — but not Jal Kerawalla! He has troubled me greatly!"

"All right," motioned Baba. "I won't forgive Jal, but you forgive him!"

Jal asked Pappa's forgiveness, and finally, after hours of fuming, he forgave him. Pappa, however, said to Baba, "I have forgiven Jal because you request it, but I tell you he is the very devil!"

Baba explained to Pappa, "This is not forgiveness! The meaning of forgiveness is to forget the insult. When you remember it, how could you have forgiven it? After forgiving, you should not remember the incident or hold anything against him.