Can you think of some other ending for the story?
When Mahendra recovered from his ghastly experience, he concluded that it must have been some trick that his mind had played on him. When he got up in the morning, the terrible memory of the previous night had faded from his memory. However, When Iswaran confirmed the presence of the female ghost, he immediately resigned from his post.
This story could have ended with some positive note. Mahendra was a very practical man. Instead of resigning from his job, he could have been shown as a real courageous man proving the ghost theory wrong.