The firefight happened at Bhagat Mohalla where miliants opened fire on a search party of Special Operations Group (SOD) of local police at 9:50 am on Monday, Jun 21.
The deceased policeman is Ghulam Hassan who was injured and rushed to hospital where he took his last breath, informed a police spokesman.
The LeT commander who lost his life has been identified as commander Zubair. He was involved in several murder cases including the gunning down of four CRPF officials in earlier 2010. He used to be dressed as a Jammu Kashmir policeman.
Four others including two civilians, a policeman and a security personnel were injured.
The encounter happened after the SOG personnel and security forces tightened the loop around the house in which militants were hiding.