Ghulam Mohammad Shah, his daughters Shabana, Farhana, Bismah and son Rahil were injured when they were attacked with iron rods and wheel range by their neighbour Maqsood Hussain and his family at Budshah Nagar locality yesterday, they said.
The scuffle broke out between the two families over construction of a boundary wall.
Shah and his children were rushed to a nearby hospital where he succumbed to injuries during treatment.
As the news of Shah's death spread, his relatives attacked Hussain's house and set ablaze his car, police said.
Hussain, his wife Roohi and sons Sadat and Fahad were arrested on charges of murder, they said.