According to the police, the incident occurred late on Thursday in Dundehera. The victims -- 31-year-old Vikram Singh lived in a rented accommodation along with his wife -- and their son.
The accused Abhinav (police has revealed only first name) was a friend of Singh.
"Vikram had taken Rs 1.5 lakh from Abhinav to aid him get a job abroad, however, the arrangement did not work out. They had heated arguments on Thursday that then lead to a major fight between the two.
"When Abhinav suddenly got up and stabbed Vikram and then his wife Jyoti, who tried to intervene," said Assistant Police Commissioner Beram Singh.
Hearing the commotion, neighbours rushed to the flat and saw the two lying in a pool of blood and the frightened boy standing nearby. They caught the accused red-handed.
The police has said that before the attack, Abhinav and Vikram had been drinking.
Investigation is underway.