Krishnamurthy is a wealthy man who lives in Madras with his wife Leelavathi and their daughter Lakshmi. Ramanathan, a friend of Krishnamurthy's, and Rangiah Naidu, a corrupt police inspector, plot together to ruin Krishnamurthy. Persuaded by Ramanathan, Krishnamurthy begins to drink alcohol, and becomes infatuated with Mohanangi, a promiscuous woman, promising to pay her ₹50,000 (about US$18,700 in 1936).[a]

Parasuraman, Krishnamurthy's friend, tries but fails to reform him. A Marvadi man who lent money to Krishnamurthy obtains a repayment warrant, sinking Krishnamurthy deep in debt. Krishnamurthy drunkenly accuses Leelavathi of having an affair with Parasuraman. When Parasuraman arrives at Krishnamurthy's house while he is absent, Leelavathi warns him to leave. Parasuram leaves but forgets his umbrella. Krishnamurthy comes home drunk, sees the umbrella, assaults Leelavathi and goes out to shoot Parasuraman. Meanwhile, Ramanathan sends his servant disguised as Parasuraman to steal the treasuries of the Ekambareswarar Temple.

Krishnamurthy chases Ramanathan's servant, whom he thinks is Parasuraman; a shot is heard, and the servant is killed. After coming to his senses, Krishnamurthy thinks he has murdered Parasuraman and decides to escape, leaving Leelavathi and Lakshmi in the custody of his servant Govindan. Krishnamurthy flees to Ceylon, where he leads a wretched life as a labourer on a tea estate. Ramanathan makes advances to Leelavathi, who spurns him. Penniless, she goes with Govindan and Lakshmi, and works as a charkha spinner. Krishnamurthy finds treasure and gives it to his master, who is pleased and adopts him as his son.

Krishnamurthy returns to his family in Madras but is arrested for Parasuraman's murder. Detective Sreenivasan's investigation reveals the malicious intent of Ramanathan and Rangiah, and he produces the real Parasuraman in court. Parasuraman reveals himself, proving Krishnamurthy's innocence. Ramanathan had been secretly following the drunken Krishnamurthy, who passed out and dropped his gun. When the servant came out, Ramanathan picked up the gun, shot the servant and placed it in Krishnamurthy's hand. Krishnamurthy is acquitted, Ramanathan is sentenced to death and Rangiah receives seven years' imprisonment. Lakshmi and Parasuraman's son Chandrakanthan marry.[1]