The incident took place in front of the Awami League's central office on Bangabandhu Avenue, local media reported.
A political activist and leader of Awami League's youth front, the Jubo League, Noor Hossain was killed on November 10, 1987 during the anti-Ershad movement.
The Awami League's announcement to hold a rally on Sunday afternoon to mark the occasion was its first significant decision since the government led by former Prime Minister Sheikh Hasina was brought down by an uprising on August 5.
In a social media post, the party invited common people and activists, who believe in the "values of the Liberation War and democratic principles", to join the march at Noor Hossain Chattar (Zero Point). It also called for removal of anti-democratic forces and the reestablishment of democratic governance under the leadership of the Bangladesh Awami League.
Immediately after the Awami League announced its programme, Bangladesh's interim government led by Chief Advisor Muhammad Yunus made it clear that it will not grant permission to hold the protest rally.
"The Awami League in its current form is a fascist party. There is no way this fascist party will be allowed to hold protests in Bangladesh," said Yunus' Press Secretary Shafiqul Alam.
The anti-discrimination student movement is also holding a counter-gathering at the same venue, demanding trial of the Awami League leaders.
Anticipating violence, the Border Guard Bangladesh (BGB) said that 191 platoons of the border security forces have been deployed in the country's capital and across the country to maintain law and order on Noor Hossain Day.