Ashfak, son of Ansar, was shot dead near a bank in the Jagdishpur market on the Lucknow-Varanasi national highway, they said.
Heavy police deployment was made and traders shut shops as panic gripped the area after the shootout. Police officials said they suspected there was old enmity between the two parties involved.
District Magistrate Shakuntla Gautam and Superintendent of Police K K Gehlot rushed to the spot after the incident, officials said.
The police have registered cases against seven people, of whom five have been identified, Circle Officer, Musafirkhana, Sukshm Prakash Singh, said.