An abused wife Sumathi (M. S. Subbulakshmi) is driven out of her house by husband and later forced into prostitution. Later she reforms her ways and devotes her life to running an institution for the children of prostitutes.

After the success of Balayogini (1937), director Subramanyam was encouraged to make more socially oriented films. In 1938 he decided to make a film version of Premchand's novel Bazaar-e-Husn and bought the rights for ₹4,000 (worth ₹72 lakh in 2021 prices). While Balayogini was about the travails of widows, Sevasadanam dealt with domestic abuse, prostitution and women's liberation. Subramanyam wrote the screenplay himself and made the film under his Madras United Artists Corporation Banner.[3][4] The completed film was 18,900 feet in length with a run time of 210 minutes.[4][5]