Maharaj Kumar from the princely state of Preetnagar, was a man whose heart brimmed with generosity and self-respect. He was disgusted with the sycophancy and manipulations of the yes-men close to the throne but could hardly prevent it. A great show was organized to celebrate the birthday of Maharaj Kumar and prominent celebrities from all over the country were invited while the commoners enjoyed a banquet of singing and dancing. Maharaj Kumar could not be a mute spectator to such mindless frivolities and wrote to the Prime Minister informing him of his decision to take a break from the princely duties and wishing to spend a few months in anonymity in Lahore.
Many opportunists took this as a chance to realize their dreams. Among them was Chaudhary Raju who along with his accomplice Moti was enjoying the party. The discussions about the beautiful city of Lahore, its vibrant lifestyle and ample opportunities to have fun caught the fancy of Chaudhary Raju. Lured by its charm, Raju collected his bags and headed towards Lahore that very night.
This was also going to be his escape from the constant bickering and squabbles with his wife Haro.
Both Maharaj Kumar and Chaudhary Raju arrive in Lahore by the same train. Maharaj Kumar leaves his luggage at the Railway cloak room and Chaudhary Raju follows Kumar’s example and also keeps his bedding at the Railway station. Raju, searches for a Dharamshala for shelter and admires the many wonders of the city of Lahore. While the Prince, having selected a place in some hotel, sends for his luggage from the cloak room.
Raju having mistaken a luxury hotel for a Dharamshala decides to stay there and relishes a luxurious meal he clearly cannot afford. Incidentally, Maharaj Kumar's men who are at the cloak room to pick up his luggage mistakenly take Raju’s belongings and leave the Maharaja’s royal luggage for Raju to take.
The possession of the royal luggage, coupled with a few more factors, establish Raju as the Prince of Chanderpur. He finds himself a celebrity and starts enjoying the respect, honour and hospitality worthy of a Prince. On the other side, Maharaj Kumar meets with an accident and is taken by Raju’s friend to his village house. There the Prince meets Chanda, the girl of his dreams and falls in love with her.
Meanwhile the Prince’s envious cousin sends assassins to kill him but the goons, unaware of the identity mix-up mistakenly consider Raju as the prince, while the real Maharaj Kumar is living incognito at a village. The goons kidnap Raju thinking he is the real prince and this news reaches the real Maharaja Kumar who is highly amused at the turn of events. He realizes that this must be the doings of his evil cousin and heads for Chanderpur leaving Chanda behind. He is successful in clearing the air about who was kidnapped instead of him and in the end after managing to banish all forces of evil from his kingdom he marries Chanda and they live happily ever after.