The movie is set in Dehradun, a hill station in North India. The movie opens with the description of the various colleges in the city. The Rajput college has students from affluent backgrounds with each student being an heir to a multimillion fortune. In contrast, the Model college has students from poor local households. Other colleges include Xaviers college and Queens college, the latter being an all girls college with the guys from all three colleges trying to woo them.
The highlight of the town is the annual inter-college sports championship with a marathon cycle race as the prime event. In the beginning of the film, the race is contested between Ratan Lal Sharma of Model college and Shekhar Malhotra of Rajput college with the latter winning the race because Ratan had an inferior bike. After the race both are felicitated by their respective schools. Shekhar being rich and now the local champion is cocky and arrogant.
Sanjay Lal Sharma a.k.a Sanju is Ratan's younger brother and is everything that Ratan is not. He's a carefree youngster who is full of himself and is always in trouble with his father Ramlal, who wants him to act more maturely and become responsible like Ratan. Sanju and his little gang, which includes Anjali (who has a crush on Sanju), bunk sports to smoke cigarettes and roam around town. Anjali and her dad run a vehicle repair shop and Anjali's father asks his daughter to stay away from Sanju.
Ramlal and his family run a small cafe which is the hangout spot for most of the college students. A number of scuffles occur between Sanju and Shekhar because of Shekhar's attempts to humiliate Ratan and his dad. Enter Devika (Pooja Bedi), who immediately catches the fancy of both Sanju and Shekhar. Initially she leans towards Shekhar but one day she misses her bus on the way to a picnic to meet Shekhar. Meanwhile Sanju asks Anjali for a car so that he can roam around town. While on his way he spots Devika and leaves his friends at the paan shop and gives Devika a lift. Devika upon reaching her destination finds Shekhar with another girl and goes along with Sanju who, although not rich, brags about his wealth.
Sanju's lie is ultimately revealed when Devika sees him dancing in the Model college group during a dance competition. After the show, Sanju and Devika break up. In between, Sanju had quietly wasted money given to him by his father (he had saved it for Ratan's new cycle). This leads to a heated argument between Sanju and his dad.
Next morning, Ramlal leaves for town and Ratan is out cycling. He stops to meet his girlfriend when Shekhar and his friends pass by. A heated argument and fight ensue, which end in tragedy when Ratan accidentally falls off a cliff. While Ratan is in hospital the song, Sanju recollects his childhood with Ratan. When his father returns, he reconciles with him. With Ratan in the hospital, Sanju becomes more responsible and decides that he will participate in the race and give it his best for Ratan. During his training, he realises his true feelings for Anjali and the two embrace each other.
A day before the race, Sanju finds out about the real cause of the accident and confronts Ratan who tells him that he didn't say anything because Sanju had become responsible and closer to all of them. Ratan asks Sanju to give his best in the race if he wants to do something for him.
With his new cycle, Sanju participates in the race. The race begins evenly with both Sanju and Shekhar going head to head. Somewhere in the middle, the two fall and a scuffle ensues between Sanju and Shekhar. During this, other cyclists take the lead. Shekhar heads back on track with his friends holding Sanju back. Sanju breaks free and joins the race, catching up with shekhar and finally beating him in the closing moments.