KAU MOR CHI admits that YUEN PAY was killed by him and he has learnt every stance of Shaolin Temple. All monks are angry. YUEN TUNG challenges him with a duel but is defeated. YUEN CHI wants to stop KAU MOR CHI. To protect YUEN CHI, CHUK fights with KAU MOR CH1 and drives him away. CHUK is still punished. FUK and CHAU come and have a fight. Other fighters come and take no action so as to wait for the best opportunity. YU assists FUK to defeat CHAU. TANG and CHI challenge CHAU but they are defeated. CHI is caught. For CHI, TANG begs CHAU to be his master. Members of the Beggars Sect are discontented and angry.