Ratchagan starring Nagarjuna and Sushmita Sen. Ajay (Nagarjuna) an unemployed youth who always gets into trouble because of his temper. This loud and angry young man gets heated up when he sees anyone committing a crime; he takes the law in his own hands... beats them up and then gives them some free advice. Ajay’s father (SP Balasubramanyam) is very unhappy at his son’s attitude, and tries his level of best to change Ajay but he fails in this matter. Ajay meets Soniya (Sushmita Sen) and she falls for him instantly. What Soniya likes about Ajay is his temper. Soniya gets Ajay’s father S.P.B’s help to get Ajay to love her. Ajay is not interested in her at first; but later changes his mind and falls in love with her.
Soniya’s father Sriram (Girish Karnad) a businessman, has no objection to his daughter’s relationship... But has one condition; which is , Ajay must control his temper for 3 months and not get into any fight what so ever, even though he sees a crime happening in front of his eyes. If Ajay doesn’t succeed he can’t marry Soniya. With a heavy heart Ajay agrees to the condition, and Sriram offers Ajay a job in his factory. Sriram actually has his own problems in his factory; 10 of his workers are working with his rival and younger brother Easwar (Raghuvaran).
Easwar is trying to put Sriram out of business and so his 10 people create havoc in the factory by killing old workers and "ragging" new workers. So when Ajay comes to work in Sriram’s factory these 10 people do the same to Ajay. Ajay keeps cool, trying to keep his promise to Sriram. But Sriram hopes otherwise; he wants Ajay to break the promise and beat up the 10 people and throw them out of the factory; At the same time, Sriram hopes that the imminent marriage between Ajay and Soniya would get cancelled, since he doesn’t want his daughter to be married to a "gangster/street fighter" like Ajay. So Sriram keeps on hoping that Ajay will somehow "burst out" so that his plans will succeed.