A police official said the encounter broke out at Gund Brath area of Sopore in the north Kashmir district late Sunday night.
The leader said the alliance members would discuss the Centre's invitation to mainstream political parties of Jammu and Kashmir for the talks.
Jammu and Kashmir Lt Governor Manoj Sinha is learnt to have apprised the defence minister about the security scenario in the union territory.
The night curfew would continue to remain in force in Shopian, Ganderbal and Bandipora in Kashmir and Jammu, Samba, Kathua, Reasi, and Udhampur in Jammu province.
Sinha said working within the tenets of financial prudence, transparency, and accountability, the Jammu and Kashmir government is moving ahead the agenda of all-round development in the region.
Abdullah met senior leaders of the party, including NC general secretary Ali Mohammad Sagar and provincial president of Kashmir Nasir Aslam Wani.
The members of the alliance will give their suggestions and a decision on the way forward will be taken there and afterwards, a decision will be taken over the participation of the meeting.
Set up in March last year, the Commission is mandated to redraw the constituencies of Jammu and Kashmir which at present is under central rule.
The meet began at 11 am at PDP president Mehbooba Mufti's 'Fairview' residence at Gupkar.
Sources said that the Delimitation Commission has written to all 20 Deputy Commissioners of J&K and asked them to share data of electorate and composition of districts and Assembly constituencies.
Qureshi said Pakistan had resolutely opposed India's actions of August 5, 2019 and taken up the issue at all international fora, including the UN Security Council.
The incident took place at Poshana when the Station House Officer of Rajouri Police station, Inspector Sameer Jilani, was travelling to Kashmir to visit his ailing mother, the officials said.
The PDP will hold a meeting on June 20 to discuss the invitation of the Centre to political parties of Jammu and Kashmir for talks, party president Mehbooba Mufti said.
Ten Chinese grenades, four Chinese pistols along with as many magazines and 20 rounds were also recovered from their possession.
Union Home Secretary Ajay Bhalla reached out to these leaders to invite them to the meeting at the prime minister's residence to discuss the future course of action for the union territory.