Khaalujaan (Naseeruddin Shah) and his nephew Babban (Arshad Warsi), who are partners in crime, pose as a Nawab and his attendant, and manage to run away with a prized necklace from a jewellery shop. During the police chase, they get separated; Babban escapes, while Khalujaan is injured, the necklace seemingly lost. Babban goes to meet his boss Mushtaq Bhai (Salman Shahid), who makes him dig his own grave, ostensibly for himself. Babban manages to escape, with the promise that he will bring back both the necklace and Khaalujaan.