Chander and Lata were good kid friends in Jahanabad, Lata being the daughter of a rich family where as Chander was the son of a poor, widow mother. Lata's parents didn't like Renu being friends with Chander. Renu's family gets transferred to Bombay. At the time of departure Renu gifts her watch to Chander as a memento.
They grow up. Chander goes to Bombay to search Lata. Chander's rich friend Prakash opens a shop for Chander where Chander can earn his livelihood by repairing musical instruments. Prakash's mother doesn't like Prakash spending money for Chander. Lata has turned a writer, her work published under the nickname of "Renu" aka "Renuka Devi", Chander becomes a fan of her work. Basanti is Lata's friend. In one of her novels, Lata writes the story of Childhood friendship of Chander and Lata. Chander reads it and writes a letter to Renu (Lata) to find out how she knows of this story and if she knows Lata, then helping him to find Lata. Reading that letter, Basanti forces Lata to call Chander to meet plotting that Basanti will meet Chander as Lata. Basanti meets Chander there and falls in love with Chander. Chander was carrying the watch gifted by Lata to him all the time, that he looses when Basanti meets him and Basanti locates it. Seeing the watch, Lata recognizes it and recognizes Chander. Basanti feels hurt and blames Lata that she was knowing that Basanti was in love with Chander even then Lata didn't tell her that Chander is the same guy who Lata herself is in love. Lata tells her that she herself was not aware.
Lata's parents contact Prakash for marrying Lata. When Chander Comes to know of it, under the lifetime of obligations of Prakash, he lets go of his love. Chander's mother dies. Prakash gets married to Lata; Chander walks off into the sunset followed by Basanti.