Two army personnel and two terrorists have been killed in an encounter at Handwara in north Kashmir's Kupwara district. The gun-battle, that began last night after the army cordoned off an area where terrorists were hiding, is still on. The encounter broke out in Laribal village of Zachaldara in Handwara, 100 kms from Srinagar. The soldiers who were killed belonged to the 21 Rashtriya Rifles.