An armed group and police exchanged fire at Portaha-based Charnath Khola in Ganeshman Charnath Municipality-4 of Dhanusha district on Monday.
The firing started after a police team led by Sub-Inspector Ramnath Yadav deployed from the Portaha Police Post, Ganeshman Charnath Municipality tried to stop the armed group at around 11:40 pm, the Area Police Office, Dhalkewar said.
Police fired two rounds of bullets in retaliation after the armed group opened fire at the security personnel.
A member of the armed group was injured in the police firing. Others fled the scene, the District Police Office, Dhanusha said.
The suspect has been identified as Ganesh Bahadur Budhathoki (30) of Ganeshman Charnath Municipality-5.
Budhathoki, who received a bullet on his left leg, is undergoing treatment at the Provincial Hospital in Janakpur.
Police said that they have recovered a loaded gun from his possession.
Further investigation into the incident is underway, police said.