A youth was stabbed to death at Rajapur, near Calico Cotton Mill at Pabna Sadar at about 11:30pm on Friday.
The deceased Jiban, 22, is son of Sujan of Rajapur village of the same upazila.
Police and local sources said that Jiban and his group had a dispute with Sweet Group over playing carrom board about a month ago, and the dispute was immediately resolved with the mediation of local residents.
An argument and a scuffle broke out on Friday between the two groups and Sweet stabbed the victim Jiban in the throat with a sharp knife and fled with his cohorts.
Local people quickly tried to take him to the hospital, but he died on the way.
Consequently, an agitated crowd set fire to the house and shop of Sweet and his followers.
Later, the fire was extinguished with the efforts of the police and fire service.
Pabna police officer-in-charge Abdus Salam said that the murder took place due to a previous enmity.
He said that upon receiving the information, the police visited the scene and efforts are underway to identify and arrest those involved in the murder.
The body has been recovered and kept in the hospital morgue and legal action is under way, he added.