The deceased was identified as 21-year-old Nandakumara Kattimani. The accused, Hanumantha and Hanumavva, have been arrested.
According to police, the incident was reported in Hunasagi town of the district on Wednesday night.
The accused had quarrelled with the grandmother of the deceased over drinking water. Victim Nandakumara had intervened and objected to the accused's behaviour.
The arguments led to a fight between the accused and the victim. The accused stabbed the victim with a knife in the abdomen killing him on the spot. The mother of Nandakumara also suffered injuries in the incident, said officials.
The Hunasagi police have registered the case and are investigating.