On the flight of the viceroy from Tumbez with an hundred and fifty men, as before related, in consequence of the arrival of Bachicao, he retired to Quito, where he was honourably received.  In this place he increased his force to two hundred men, and finding the country fertile and abounding in provisions, he determined to remain there till he might receive ulterior orders from his majesty, in reply to the informations he had transmitted by Diego Alvarez de Cueto.  In the mean time he appointed strong guards to defend the passes in the mountains, and stationed spies on the different roads, that he might have early intimation of the procedure of Gonzalo Pizarro at Lima, which is three hundred leagues from Quito.  About this time four soldiers belonging to Gonzalo deserted on account of some injurious treatment, and seized a small bark in the port of Lima, in which they sailed northwards to a place where they landed, and whence they travelled by land to Quito.  On their arrival, they represented to the viceroy, that the inhabitants of Lima and other places were exceedingly discontented by the conduct of Gonzalo, who subjected them to the most harassing and vexatious tyranny, driving them from their houses, and despoiling them of their goods, so that many of the colonists were reduced to depend on other persons for their subsistence.  That Gonzalo imposed such burthensome contributions on the whole inhabitants, that they were unable to endure them; and that all were so weary of his tyranny, that they would gladly join any person who might come among them in the name of the king, to relieve them from the cruel oppression and tyrannous violence of the usurper.  In consequence of this statement, the viceroy was induced to march from Quito towards San Miguel, appointing to the command of his troops one Diego de Occampo, an inhabitant of Quito, who had joined him on his arrival at Tumbez, and had expended large sums in his service from his own private fortune.

The licentiate Alvarez always accompanied the viceroy, and these two established themselves as the court of royal audience, in virtue of a commission from his majesty which the viceroy still held.  By this royal order, the viceroy was authorised after his arrival at Lima, to hold audience in conjunction with two or one of the oydors who might first arrive, or even in case that any two or three of them should chance to die.  In pursuance of this authority, the viceroy ordered a new seal to be made, which he committed to the custody of Juan de Leon, alcalde or police judge of Lima, who had been nominated by the Marquis of Camarosa, grand-chancellor of the Indies, as his deputy or chancellor of the audience of Lima.  De Leon had fled from Gonzalo Pizarro, and had joined the viceroy at Quito.  In consequence of this arrangement, the viceroy issued such orders and proclamations as seemed needful or expedient, in the name of the emperor Don Carlos; authenticating them with the royal seal, and by the signatures of himself and the licentiate Alvarez.  By these means there were two royal audiences in Peru, one at the city of Lima, and the other wherever the viceroy happened to reside; so that it frequently happened that two opposite and contradictory decrees were pronounced and promulgated, in one and the same cause.