The Sikh forces under Banda Singh Bahadur marched towards the Mughal capital. Several Muslims and some Hindu commanders collected at Lahore to fight under the command of Abdul Samad Khan. Banda Bahadur was well aware of the preparations made by the Mughal government. He, thus, thought of constructing a mud fort at Kot Mirza Jan, a small village located between Kalanaur and Batala. It was built as an escape route on the lines of Lohgarh leading into the forest area behind Kot Mirza Jan. However, before he could construct the fort a strong Mughal force under the command of Abdul Samad Khan and his deputy Arif Beg suddenly attacked the Sikhs. Once Banda Bahadur reappeared from the Jammu side and marched towards Kalanaur, the Mughal forces kept a track of his movements. Nevertheless, Banda Bahadur and his army fought fiercefully and almost defeated the imperial army. Time and again they displayed their courage and valour but as they did not have any place of defence they were forced to abandon their positions and recede in the village of Gurdas Nangal. Presently it is now in ruins and is known as `Bande Wali Theh.` The Sikh force took refuge in the ihata of Bhai Duni Chand`s haveli. The enclosure had a fairly strong wall around it. Banda Bahadur put all his efforts to strengthen his defences. He collected collect ration and ammunition for his army. The haveli was enclosed with a moat that was filled with water from the neighbouring canal by cutting the imperial canal and other streams. The water was allowed to spread and form a quagmire around the place so that the enemy could not easily come close to the enclosure.
On 17 April 1715 Abdul Samad Khan was instructed by Emperor Farrukh Siyar to follow the Sikhs to their new destination and kill or imprison the Sikh chief and his followers. The haveli was surrounded by the imperial forces but they could not enter it. Abdul Samad Khan and his son Zakariya Khan along with the forces attempted to attack the Sikhs but they were prevented by the comparatively small number of Sikhs. Abdul Samad Khan also utilized the reinforcement brought by Qamr-ud-din to further strengthen his force. The area was divided into four sections and was under the command of three senior commanders: Abdul Samad Khan, Qamr ud Din, Zakariya Khan, and the faujdars and zamindars. The tent was pitched close together all around the fort. Slowly unnoticed by the Sikhs, they closed all the openings between each shelter. Even before the Sikhs were aware of it, they were completely surrounded. The battle continued for several months. There were considerable losses on both sides. The losses of the Sikhs were irreplaceable while the losses of the Mughals were replenished by fresh supply of soldiers. However, all the efforts to enter through the gates failed. Abdul Samad Khan had lost hope of success against the courageous foe. They at last thought of approaching through the underground. Subterranean passages were made on all the corners of the fort. Qamr ud Din Khan succeeded in capturing the ditch and a bastion and Zakariya Khan guarded the second gate. The Sikhs were trapped from all sides and were confined for almost eight months. Only a meagre stock of food was now available. The imprisonment had completely exhausted them. Near famine conditions now prevailed and it became impossible for them to defend themselves. Finally on Wednesday 17 December 1715, the Mughal army captured the Sikh enclosure at Gurdas Nangal. The Sikhs including Banda Bahadur were imprisoned. Almost 200 to 300 Sikhs were bounded by Abdul Samad Khan and put to death. Their heads were cut off and mounted on spears. The news of the fall of Sikhs was reported to the emperor at Delhi on 22 December 1715.