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Station House Officer (SHO) police station Digri Inspector Ashok Kumar said the man was identified as Varinder Singh Dhammu of Krishna Nagarin Moga.
He was a close relative of Manjit Dhammu, an independent councillor in Moga, he said.
The man was admitted to the DMC Hospital, where he was declared dead, Kumar said.
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After coming out of the tavern, both the groups again indulged in a fight during which the man was allegedly shot dead, he said.
Police have seized two weapons from the spot, Kumar said, adding that an investigating into the matter is underway.