The militants and government forces on Wednesday evening exchanged fire at Badrapayeen village of Kralgund in Handwara area in North Kashmir's Kupwara district.
According to the official reports, government forces, based specific information about the presence of militants, carried out a cordon-and-search operation (CASO) in the village when they came under the attack.
The government forces retaliated and exchanged fire.
According to Army sources, they rushed for reinforcement to the area and have installed lightning to prevent militants from escaping the area taking advantage of darkness.
Meanwhile, sources said that militants might have escaped after the initial round of fire.