After the martyrdom of Baba Banda Singh Bahadur some Sikhs began to regard him (Banda Singh) as Guru. They were called Bandeis. But the strict followers of Guru Gobind Singh, or Tat Khalsa, believed that the system of personal Guruship had ended with the Tenth Guru. The Bandeis began to claim that they should have an equal share in the management of the Gurdwaras and other affairs of the Panth. But the Tat Khalsa refused to accept this claim. They did not favor such divisions in the Panth. Still, the Bandeis persisted in their claim. Much tension was created between the two parties.
Mata Sundri, who was residing at Delhi, became aware of these troubles. She sent Bhai Mani Singh to Amritsar, with Sri Kirpal Singh, the maternal uncle of Guru Gobind Singh. He was charged with the duty of bringing about peace and unity among Singh. He was appointed Granthi (or head priest) of the Darbar Sahib. He was asked to organize the service in the Gurdwara and to manage its affairs. He was further told by her, 'Don't send any money from the offerings to me. The whole income should be spent there. It should be spent in maintaining the service, langar, and other needs of the institution. Bhai Mani Singh and his companion arrived at Amritsar in the beginning of 1721. In the consultation with the notables of the city, they put the affairs of the Gurdwara in order.
A few days later it was the Vaisakhi fair. Elaborate arrangements were made for the grand celebrations. Thousands of Sikhs gathered around the tank. The Tat Khalsa and the Bandeis also gathered in large numbers. They were preparing to come to blows. But Bhai Mani Singh came between them and saved the situation. He suggested that instead of fighting, they should decide their claim by casting lots. He took two slips of paper. On one he wrote, 'Waheguru Ji Ki Fateh'. These words were used by the Tat Khalsa when meeting and saluting each other. On the other slip he wrote, 'Fateh Darshan'. These words were used by the Bandeis for the same purpose. Both slips were immersed in the water at Har Ki Pauri. The agreement was that the party whose slip rose first to the surface, would be considered to have carried the day. For some time neither slip came up to the surface. It seemed as if both the slips had sunk forever. The parties stood in great suspense. At long last, the slip with Waheguru Ji Ki Fateh came to the surface. The Tat Khalsa was declared to have won. The Bandeis took it as the Guru's verdict. They agreed to give up their claim.
In this way, on account of Bhai Mani Singh's wisdom and sweetness, the dispute was settled in a peaceful manner.
ju mere vas di gal nahi read karni 
hun na ta menu jayda pata hai na hi baneia da pata 
je tuhanu pata ta dasdu 
bakki gyan van'dan nall vadh'dah hi aa 
sanu bhi kuj pata lag jau agyani bandeyan nu 
