When the House met, opposition BJP leader Jagadish Shettar raised the issue citing media reports and demanded that the matter be immediately taken up for discussion.
BJP worker Yogish Gowda was hacked to death by unknown assailants in Dharwad on June 16 last year.
BJP and Gowda's family called it a political murder.
Shettar said it was reported that a DySP in Inspector General's office here was "pressurising" the family to withdraw the case and come to a compromise at the behest of a minister. This was an important issue, he said.
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When BJP remained firm on its demand, Speaker K B Koliwad also said discussion could happen only after the question hour. Following this, BJP members entered the well of the House and started a dharna.
JDS members too entered the well and staged dharna demanding discussion on the house committee report on Nandi Infrastructure Corridor Enterprises's Bengaluru-Mysore Infrastructure Corridor project.
The Speaker then adjourned the House for 10 minutes.
The Gowda's family alleged that they were being pressurised to withdraw the case and it was being done at the behest of District in-charge Minister Vinay Kulkarni.
Meanwhile, local TV channels aired an audio clip purportedly of the minister talking over phone and putting pressure on the victim's advocate to withdraw the case.
Speaking to reporters outside the assembly, Kulkarni denied the charge and said he was not even aware of it (the audio clip).
When the House met, BJP members continued their protest and demanded that the case be handed over to CBI.
The speaker again adjourned the House for 10 minutes.
As the House resumed proceedings again amidst chaos, the speaker directed Home Minister Ramalinga Reddy to table his reply on the issue.
He said Gowda was a history-sheeter and cases were pending against him.
The Speaker then adjourned the House, which began on November 13, sine die.
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