The story centers around the Chandragiri family whose head Madhava Menon is liked by all in the village. His only son Arjun who is a student in Manipal. As Madhava Menon's popularity rises and spreads to other parts, so does the number of enemies who feel that he is stealing the limelight from them. Things reach a pass where Arjun had to be summoned from Manipal to clear up the atmosphere and restore order. The constant struggles between Madhava Menon and Arjun Madhav on one side and their enemies on the other side is the main theme in the story.

Simhasanam was initially intended to be a remake of the cult Mohanlal-starrer Naduvazhikal. But on scripting, it deviated so much from the original story that, it is no longer a rehashed version of the 1989 hit. So they made it as a loosely based adaptation of Mario Puzo's The Godfather.