Raj Malhotra (Akshay Kumar) is a product engineer for a telecommunications company, Air Voice. Priya Saxena (Kareena Kapoor), a junior lawyer goes to Raj’s house for an interview, mistaking him for barrister Ram Chautrani (Annu Kapoor), a neighbour and Raj’s friend. They fall in love, marry and are soon expecting a child. Raj expects to be promoted to CEO when the company’s chairman (Amrish Puri) arrives with his new wife, Sonia Roy (Priyanka Chopra) to announce the promotions. Sonia Roy is named the company’s new Chairperson; and after a discussion with her husband, she announces the promotions. The CEO position instead goes to Raj’s friend Rakesh (Vivek Shauq), while Raj is placed on the Board of Directors. At a party, Raj, accompanied by Priya, learns about his new boss, Sonia Roy. Priya is surprised that Sonia is the wife of the much older Mr Roy. Raj and his colleagues talk about Sonia being very attractive and the age difference between her and her husband, and Raj jokes that his magnetic personality was responsible for his massive promotion. It is implied that Raj may have encountered Sonia previously.

A flashback explores Raj’s previous relationship with Sonia. Five years earlier, Raj and Sonia (then a model) meet at a beach in Cape Town. They fall in love and move in together; Sonia becomes pregnant with Raj’s child, which makes him happy, but Sonia refuses Raj’s marriage proposal and says she is going to terminate the pregnancy as her child would stand in the way of wealth, fame, power and status and their relationship ends.

The next day, Rakesh tells Raj about a defect in the company’s new mobile handset: a call goes to two people simultaneously—the intended recipient and another random person on the phone’s contact list. Raj needs Sonia’s permission to stop production, and she invites him to her house to discuss the matter. Sonia makes provocative and sexually explicit statements to Raj, who ignores her. She then aggressively tries to pursue Raj, who resists. Although he repeatedly rejects her advances, Sonia continues trying to seduce him. As he leaves, Sonia threatens to punish him for spurning her. The next day, he learns that Sonia has told her husband that he sexually harassed her. Since he has admitted finding Sonia attractive, his claim of innocence is not believed, and the company pressures him into resignation.

Raj asks Chauthrani to take his case; Chauthrani tells him not to resign, and to keep going to work. This case goes to court; Sonia and Roy engage a lawyer (Paresh Rawal). Initially, the bulk of the evidence is against Raj and the case gains widespread media attention. Raj’s bank manager returns from Bangkok and gives him a tape that recorded Raj’s encounter at Sonia’s house. After the tape is proven genuine, Chauthrani is struck by a car driven by a goon hired by Sonia and the tape is destroyed. When Priya asks Raj why he called their bank manager from Sonia’s house, he replies that he had called Rakesh, and the call went through to the bank manager as well due to the defect in the company handset. Priya continues the case after Chauthrani’s injury. She exposes Sonia’s earlier relationship with Raj in Cape Town and finally plays Rakesh’s voice mail to the court – revealing what really occurred between Raj and Sonia. It is revealed that Sonia married Roy for money, power and status, but when he could not satisfy her sexually, she tried to resume her relationship with Raj. Priya wins the case and Roy leaves Sonia. Guilt-stricken and humiliated, Sonia commits suicide by jumping from a building. The end credit scene shows Raj and Priya walking their child.