Baba took this to mean that Dhake was quitting. So he inquired of Chanji, Vishnu, Padri, and Nisal whether any of them would be willing to serve as principal, but they refused, saying that Dhake was the best man for the job and he did not intend to quit. Baba was displeased with their attitude and went to his Jhopdi.
He later called Chanji and Dhake and informed them that the school should be closed. Chanji, perhaps in the heat of the moment, suggested that in that case all the activities in Meherabad should be stopped and the mandali and students should be sent back to their respective homes.
Hearing this, Baba replied, "I have promised the mandali to keep them here, whether or not there is a school. I wish the activities in Meherabad to be to my satisfaction."
Chanji said, "Only Dhake is the proper person to be the principal as he is the best qualified and is supervising it very well." Baba told Dhake to take more interest in the work and pointed out one or two things that were wrong, but allowed him to continue as before. At their request, Baba agreed to come to the mandali's quarters every day, as he used to do previously but had not done for quite a few days.
Three days later, Baba again expressed his dissatisfaction with the administration of the school. Blaming Chanji and Dhake, Baba demanded an explanation. They replied, "To satisfy you is utterly impossible because you are perfect and we are not! To follow your instructions to the letter, in the work of the school, is difficult. We are not allowed any freedom whatsoever to run the school as we see fit. Our every duty is subject to your orders and scrutiny, and because we are not perfect, you remain dissatisfied."
Chanji and Dhake were conscientiously carrying out their responsibilities, which they took very seriously. They were under constant pressure and were extremely careful not to do anything that might upset Baba. But Baba being Baba, always found some fault with them.
Baba replied at length concerning Meher Ashram and about the work of the mandali. In his own inimitable way, Baba scolded and appreciated the mandali at the same time:
This school is not like the schools you find in the world. Such worldly institutions of learning are being run by the government, municipality or charitable trusts.