The killing of the civilians was described as "highly painful" by Chief Minister Mehbooba Mufti who urged restraint from all sides while opposition National Conference leader Farooq Abdullah said the incident reflects the "alarming situation" in the valley.
Separatists in Kashmir called for a general strike tomorrow against the killing of three civilians and sought an impartial inquiry into the incident.
This morning, security forces launched a cordon-and- search operation in Durbugh area of Chadoora village following information about the presence of militants in the area, a police official said.
As the gunbattle was underway, scores of people gathered at the site and resorted to stone-pelting, leading to clashes with the security forces.
The day-long clashes left three civilians -- all young men in their 20s -- dead while 18 others were injured, the police official said.
The slain civilians were identified as Zahid Dar, Saqib Ahmad and Ishfaq Ahmad Wani.
All of them had firearm injuries, the official said.
Clashes between protestors and security forces were going on till reports last came in, he added.
"One militant has been killed and a weapon has been recovered from the scene of the encounter," an army official said.
A police official said one para trooper also sustained injuries in the encounter.
Commenting on the deaths, Mehbooba said, "It is highly painful to see the young boys losing their lives."
She termed the killings as highly unfortunate and said the people in Kashmir continue to suffer massive collateral damage due to violence of past three decades or so.
Violence has given people of the state innumerable miseries, she said, adding that it is high time that peaceful means are given a chance for the resolution of issues.
The trend of civilians assembling near the encounter sites and engaging security forces in clashes emerged last year.
It has continued even after Army Chief Bipin Rawat warned the youth against interfering in anti-militancy operations and the state administration imposing Section 144 within three kilometre radius of the encounter site.
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