One of the most significant events of his Caliphate was the internal dissension, which Huzoor dealt with head on. Some high ranking office bearers of Sadr Anjuman Ahmadiyya as well as some other members tried to vest all powers to Sadr Anjuman instead of the blessed institution of Caliphate. They plotted to place the power of decision making in the hands of Sadr Anjuman, as a consequence there will be no one to question their authority.
For this purpose they came up with the argument that in his treatise al-Wasiyyat, Promised Messiah(as) has appointed Sadr Anjuman as his sole successor and not the Caliph. But God Almighty failed them in their evil designs by their own doing. At the time of the election of the First Caliph, they had signed a declaration stating unequivocally that according to the wishes of Hazrat Ahmad(as) outlined in al-Wasiyyat, they had chosen Hazrat Maulana Noor al-Din as his Caliph. That they would obey Hazrat Maulana in the same manner as they had obeyed the Promised Messiah(as).
When they realized that they would not succeed in their plans, they gave the spin that Promised Messiah(as) was not a prophet. They alleged that as the Caliphate is established only after the demise of a prophet, and since Hazrat Ahmad(as) was not a prophet, consequently there was no need for the institution of Caliphate. This plan did not work either because they had previously signed a declaration stating that Hazrat Ahmad(as) was surely a prophet and Hazrat Maulvi Noor al-Din(ra) was his first Caliph.
Realizing that their plans were bearing no fruit, they hatched a plan to curtail the authority of the Caliph. They proposed that the functions of the Caliph should only be to take pledges of allegiance, lead the Prayer services (Salat), perform marriages and deliver sermons. The rest of the powers should be vested in the Sadr Anjuman. This plan fizzled out because Hazrat Khalifat al-Masih the First(ra) had categorically stated in his speeches and sermons that:
“Allah appoints the Caliph, the person elected Caliph after me will be appointed by Allah also. Whosoever takes pledge of allegiance at his hand, is obliged to follow all his directives to the fullest measure”.
Anyhow the importance of Caliphate became crystal clear to members of the Community and they were safeguarded against the evil designs of its opponents. Only a handful of people supported these dissidents. Hazrat Khalifat al-Masih the First showed them the carrot and the stick, even invited them to renew their covenant of allegiance.
As Huzoor had a commanding personality they renewed the pledge of allegiance reluctantly. However they continued to plot against him to the last breath of his life. Then the dissident group openly renounced the institution of Caliphate and immigrated to Lahore. Under the leadership of Maulvi Muhammad Ali they set up their separate association, Ahmadiyya Anjuman Ishaate Islam.