But Balna had not been drowned as her stepmother and her sister thought. It so happened that the place where she had fallen into the river was close to where the old seven-headed cobra had his hole. He had heard the sound of voices overhead, and then a great splash; he looked out to see what had caused it, and there he saw the young Ranee struggling in the water. He felt sorry for her, and reached out and drew her into his hole. Then he carried her up to where she could get some air, for his hole had two openings, one into the river and one out on to the bank overhead.

The young Ranee was almost drowned, but presently she came to herself again. Then she wished to set out for the palace, but this the cobra would not allow her to do.

“Your stepmother and your sister are there even now,” he said, “and if you went back they would certainly do you some harm. Stay here with me, and if your husband, the Rajah, comes to look for you, I will let you go back with him, but not otherwise.”

When Balna heard this she was very sad, but she was obliged to stay there in the cobra’s hole, as he said. After a time her little son was born there, and she named him Muchie Lal, the Ruby Fish, after his father.

The little Muchie Lal grew up strong and straight and handsome, and the old cobra became so fond of him that he loved him better than he did his own children; there was scarcely anything he would refuse him.

One day a bangle-seller came past the cobra’s hole, and Muchie Lal wished to buy some of his bangles, but the cobra said, “No, these are very common bangles, and not suitable for a prince to wear. I will give the man some jewels, and he shall make for you bangles such as you ought to have.”

The cobra then brought from his treasure-house a number of diamonds and rubies and other precious stones. He gave them to the bangle-seller. “Take these,” he said, “and make them into bangles, and bring them back to me as quickly as possible and you shall be well paid. And remember, they must be very handsome, for they are for this prince, Muchie Lal.”

The bangle-seller took the stones home with him and made the bangles, and they were finished in a week’s time. Then he started out to carry them back to the cobra. They were very handsome, and he was so proud of them that he carried them so that every one might see.

Now on his way it so chanced that he met Muchie Rajah, and the prince was so surprised to see a poor man carrying such costly bangles that he stopped and began to question him.