Karz Chukana Hai is a family drama. The movie revolves around an elderly man named Atmaram (Kader Khan), who has always been dishonest and lazy with his work, and finally is thrown out of the office. He depends on his two sons - Vijay (Raj Kiran) and Ravi (Govinda) for the finance. Later, Vijay learns that his son is suffering from a disease that must be cured urgently, or he may die. Vijay and Ravi work hard to collect the funds, while Atmaram remains indifferent. Vijay overworks, and due to exhaustion, falls off the height and dies. It is then, Atmaram realizes his mistake and decides to mend his ways to collect funds for the treatment of his grandson. Will Atmaram, with the help of Ravi, be able to collect the required money?