"Three persons wearing Army uniform intercepted a SUV, forced out the occupants and opened fire on them at Tarnah Nallah bridge in Dayala Chak belt of Kathua district around 0500 hours", a police officer said.
One person was killed and three others were injured, he said. A vehicle carrying the suspected militants was intercepted by the Army near a private college in Kalibari-Janglote belt of Kathua district, resulting in fresh firing which was going on when last reports came in from the area.
Heavy firing between the two sides is going on, police said. The injured have been shifted to Government Medical College Hospital, police said, adding a high alert has been sounded by the security agencies.
Security has been stepped up at Army camps and important places in Kathua, Samba and Jammu districts.
This is the second major terror attack in Kathua district. On September 26, 2013, three heavily-armed terrorists had attacked a police station and an Army camp in the border districts of Kathua and Samba, killing ten people, including four policemen and a Army officer.
An outfit calling itself the 'Shohada Brigade' had claimed responsibility for the twin terror attacks. However, security forces believe the Lashkar-e-Toiba was behind it.
BJP's Prime Ministerial candidate Narendra Modi had addressed a rally in Hiranagar-Dayalachak belt of Kathua district on March 26, in which he had had hit out at Pakistan.
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