Purshottam Rathod, the retired policeman, and his son-in-law Dalpat Makwana had come for hearing of the dowry harassment case filed by Rathod against the latter, police said.
They got into a fight after coming out of the court.
Rathod went to a neighbouring blacksmith' shop and picked up a hammer. He hit Makwana on the head several times, police said.
Makwana died on the way to hospital.
Inspector R M Bhadoriya said complaint was also filed against Rathod's wife Manjula and sons Alpesh and Manoj as they were allegedly involved in the scuffle.