Nicholas and Kate are forced to travel to London and leave their hometown Devonshire where they were living in comfort. They seek the help of their only relative Ralph Nickleby, who is a cold and ruthless businessman.
Ralph is not desirous of helping their destitute relatives and gets Nicholas a low paying job with one eyed man Mr. Squeers. Ralph’s clerk, hands over a letter expressing concern for young man and offers assistance if needed.
Nicholas learns while working with Mr. Squeers, that he and his wife are involved in a scam. They ill-treat and starve the innocent children who are born illegally, crippled or deformed and in turn charge high fees from their parents for taking care of them.
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Nicholas bluntly denies the affections of Mr. Squeers’ daughter Fanny, who deludes herself into thinking that he loves her. He also befriends Smike, a simple boy who is an unpaid servant in the place.
One fine morning, Smike tries to run away but is caught. When he is got back to Dotheboys Hall, Mr. Squeers begins to beat him, to which Nicholas intervenes and gives back a violent thrashing.
Nicholas packs his belongings and is found by Smike who wishes to go with him and both of them set out towards London. When Nicholas’s search for employment fails, Noggs gives him the position of a French teacher. Kate and her mother have been forced out of their Cheerblye’s lodgings by Mr. Ralph who sends them to a cold, drafty slum. Ralph employs Kate in Madame Mantalini’s showroom where her husband tries to flirt with Kate.
Ralph invites Kate to a dinner where she is betted over by Mr. Hawk who also attempts to force himself upon her in an inebriated state. Kate doesn’t tell her mother with the fear of losing financial assistance from Ralph. Later, Nicholas is also turned down by his uncle and has to leave London.
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Smike and Nicholas join an acting company and perform great plays earning great acclaim for their performances from the audiences. Hawk and one of his friends Lord Frederick plot to humiliate Kate for refusing his advances.
Ralph refuses to help and Noggs informs Nicholas who returns back to London to help his sister. Hawk and Fredrick attempt to toast Kate in a restaurant which is discovered by Nicholas who beats them. Lord Verisopht is killed by Hawk in the resulting duel and Ralph loses the huge sum of money he owed to the Lord. A beggar Brooker tells Ralph that he has a secret about him, which he ignores.
Nicholas is helped out by a benevolent merchant who employs him and offers him generous salary and also provides a house for the family in London Suburb. Smike falls severely ill with tuberculosis and inspite of all attempts to save him, he dies.
Nicholas has fallen in love with Madeline Bray and learns that Bray’s father had a huge debt to pay off to Ralph.
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Bray is marrying his daughter with Arthur Gride to pay off the debts. Guilt-Ridden Bray dies on the wedding day and Madeline is saved from marrying Gride. Nicholas and Kate take her home.
Ralph makes various schemes against Nicholas in which he fails. Squeers is also arrested. Ralph learns from beggar Brooker that the dead Smike was his own son from a woman that Ralph married. Ralph is devastated and commits suicide.
Nicholas marries Madeline and their extended family moves to Devonshire, where they live in peace.