Pedarayudu is a kindhearted and disciplined man. He sits on the ancestral throne in his village to do justice. He hears all the cases and gives solutions to the people and punishments to the wrongdoers. His wife Lakshmi admires and respects him. His brothers Raja and Ravindra fear for him and also have a lot of respect for him as he has brought them up as his children. Raja marries Bharathi, the daughter of an industrialist. She at first never liked Pedarayudu because of his verdicts and attitude and her husband either for being so timid before his brother but later transforms after knowing his greatness from her father. Ravindra loves his paternal cousin, Bhupathi's daughter. In the flashback, Paparayudu, Pedarayadu's father, orders Bhupathi to marry his servant's daughter whom he raped, though he is his sister's son. His brother-in-law shoots him as he is disappointed by his verdict. Enraged, Paparayudu gives his final verdict before dying to abandon their family, and whoever visits his house will receive the same punishment and also not to share even a glass of water with them. Paparayudu also tells Pedarayudu "Whenever we give a wrong verdict, that moment it is said that we die." The moment when he says that, he dies. Bhupathi builds envy on his uncle's family and waits for an opportunity to take revenge on them. He plans to bring a lady as a teacher to the school in the village and tells her to make Raja fall for her. She does so to save her father, who is in the hands of Bhupathi. He kills her and makes the villagers believe that Raja has done this. Pedarayudu sentences 10 years of exile for his brother's family. Bhupathi comes to know of his daughter's love and tries to kill Ravindra, with the help of his goons. Raja goes in rescue of him, and pregnant Bharathi goes to Pedarayudu to convey this message. While Raja starts to take revenge on Bhupathi, Pedarayudu's aunt rushes to Pedarayudu, kills Bhupathi, and reveals the truth and tells that he punished his brother without committing any mistake and also told that the crimes that were thrown onto Raja were really done by Bhupathi. Pedarayudu dies on knowing that he gave a wrong verdict, and Raja is shown taking the throne.
