As most people know, impaled Karan = angry Vivek. He goes nuts and starts flailing like a loon all over Kapil. Kapil, being almost as tough as Atul, tosses him around like a rag doll.
We see TP working on his prayer stuff again, and finally it pays off. Bright glowing purple religious symbols come smashing through his windows and float around the room. The first thing I thought of were the power-ups from Quake 3 Arena. These all mush themselves together on the table where Divya was earlier, and fly out of the room in a big purple wad.
They make their way to the steel mill and fly into the impaled Karan's chest. This invigorates him and he's able to pull the steel pole out from his torso, just like Arnold did in T2. I think it's safe to assume this means now that Karan has had divine powers bestowed upon him. Now, this was important... wasn't it?
Karan walks over to Kapil and starts swing at him with the pole. Kapil does a move where he gets blurry and moves really fast. It looks nothing like the Agents from the Matrix. Really. Finally Karan connects, and Kapil is stunned.
Divya appears through the wall, and possesses Kapil. Kapil gets up and has one last costume change (his coat turns into more padding for his body armor) and ... (sigh) they fight some more. Wire-fu, dummies being thrown, on and on. Eventually, Kapil is impaled on a sharp metal prong sticking out of the wall.
Karan runs over and pulls him off the prong by yanking him down. That is, the prong goes up through his chest and shoulder. This is all completely bloodless, so no need to cover your eyes.
Karan takes Kapil by the shoulders and rips him in half. Really. He tosses the larger piece into a vat of acid, and we see one last ripped-off shot from T2 as Kapil melts.
Karan gets the classic "What the hell just happened?" look on his face as he goes to pick Vivek the Useless off the floor. They embrace and look relieved. They look up to see the spirits of Divya and Kapil rising up and vanishing into the wall. The two ancient lovers are whisked away to their CG polar hideaway and they dance around a little bit. We pull away from them as they are framed by the end title.
Yep, that's right. It just ends. We don't see how the survivors deal with the consequences (as you'll recall, Karan is still wanted for assault, not to mention savagely beating several policemen), no punishment for the two mystical killers that slaughtered six innocent people. There aren't even any credits!