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Jagu is a nice hearted man. When Hari comes to Bombay, he is confused on what to do next. He eventually finds work and earns his living in Jagu's Sri Krishna Eating House. Hari gets his meals there and earns 1 rupee a day along with other 2 boys. He also gets to sleep there.
Mr.Panwallah is an old man who has his watch-mending shop close to Jagu's eating house. He inspired Hari and makes him imagine being as a watch-mender in his village. Hari finds him very helpful as he pays Hari for the watches he mends and Mr. Panwallah also teaches him how to mend watches.
Without them Hari would not be able to live and would be lost.