Some elderly and well intentioned Muslims of Mubarakpur established a madarsa called Misbahul Uloom in 1317 (A.H.) / 1899 (A.D.) next to the mosque of Rani Deena baba in a thatched house on the western side. The Madarsa was aimed to impart the education of the Holy Qur'an and the primary religious texts. This institution was run with the assistance and contributions of the people in spite of their bad economic condition.

Those were the days when there was no discrimination between the Sunnis and the deobandis. Except for some Shi'ites the entire Muslim population comprised the Sunnis.

The early teachers of the madarsa were Maulana Mohammad Siddique Ghusavi , Maulana Noor Mohammad Mahmood. Unfortunately maulvi mahmood, who belonged to Pura Ma'roof, a village in the district of Azamgarh, was from the Deoband school and he did not keep his inclinations secrets. Two students and the managers of the Madarsa and some others came under his influence. The difference rose with the emergence of the Deobandi School of thought. When heated debate started on whether Allah can tell a lie or not. Some students under the impact of Maulvi Mahmood believed that it was possible while the Sunnis believed that Allah can not tell a lie. This controversy grew in magnitude and affected the Madarsa, rather adversely. The Deobandis started their own Madarsa,called Ehya-ul-Uloom while the ambitious Muslims retained the name of Misbahul Uloom and continued their madarsa as such. They shifted it to the Mosque at Gola Bazar in 1326 (A.H.) 1908 (A.D.)