Acting on a tip off about the presence of two Lashkar-e- Taiba militants, security forces cordoned off Chinkipura area at around 2.30 am which led to the encounter.
In the ensuing gunbattle, the army captain, a jawan and a militant were killed, official sources said.
Additional forces have been rushed to the spot, which is thickly populated, to nab the holed up militant. Identity of the killed militant is yet to be ascertained.
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