He was the founder of Khuda Bakhsh Oriental Library and Chief Justice of Nizam's Supreme Court of Hyderabad from 1895 to 1898.

His father, Muhammed Bakhsh, was a lawyer working in Bankipur and although he was not wealthy, due to his passion for Persian and Arabic literature, he has amassed a collection of 1200 manuscripts.

[3] Originally, Khuda Bakhsh read in Calcutta under the care of a Nawab Amir Ali Khan Bahadur, who was a pleader in the Sadr Diwani Adalat.

[4] He became the first director of the library and remained in that position until his death, except for a brief period from 1895 to 1898 when he was serving as Chief Justice of the Supreme Court of Hyderabad.

[4] He was made the first honorary Vice Chairman of Patna Municipal Corporation under the Former Governor General of India George Robinson's cabinet.

Khuda Bakhsh was also a great friend of Shibil Nomani and Sir Syed Ahmed Khan with whom he worked together to introduce multiple reform in the education system of British India.

[6] Sir Khuda Bakhsh was approached by the representatives of the British Museum who made a stunning offer to purchase his collection, but he declined.

[9] The Khuda Bakhsh Award for scholars for their lifetime achievements in the fields in which the library specializes was created in his honor in 1992.