Amar( Vinod Khanna) is the most dreaded inspector in Police force. His mission and promise to himself is to uproot crime from its very roots. He is the strong arm of law which nobody can escape. Sub-inspector Rima Kapoor (Dimple Kapadia) is a new recruit on the police force and is posted as a Deputy to Inspector Amar.Niten (Jackie Shroff) is a journalist and a close friend of Amar. They are like brothers and Niten treats Amar's mother (Sushma Seth) as his own. Niten is in a position to give Amar news about whereabouts of the underworld since he is a crime reporter and Amar gives him first hand report to new cases. Based on the information from Niten, Amar risks his own life to get these criminals and succeeds in putting them behind bars, till some smart lawyer creates loop holes in law and crime is on the road again leaving Amar aghast at the system. Amar is even reprimanded by the D.S.P. (Shafi Inamdar) who finally takes Amar off active duty. But Amar says that this system will not last long and finally someone will take law in his own hands and give justice which the system has not been able to give.'AAKHRI ADAALAT' passes judgement on criminals who have been left by the system. Their killer, in a black garb, methodically elimimates the convicted criminals. Panic strikes within the ranks of Girja (Paresh Rawal), Shivsaran (Gulshan Grover) and all other dons in their own right. They did not know who is killing the underworld dons.Who is the killer? Who are the people responsible for creating a parallel 'ADAALAT'