The issue rocked Parliament today with members in both Houses demanding a strong response from the Government. Both the Lok Sabha and the Rajya Sabha were adjourned till noon.
Defence sources said the Pakistani soldiers, numbering about 20, intruded into the Indian territory past midnight and ambushed the patrol party at the Sarla post on the Indian side of the LoC.
A Subedar and four jawans of the 21 Bihar Unit were killed in the attack which took place at around 2 AM, the sources said.
Chief Minister Omar Abdullah tweeted, "(I) was briefed early this morning about the news that five of our soldiers had been killed on the LoC. My heartfelt condolences to their next of kin.
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"These incidents don't help efforts to normalise or even improve relations with Pak and call in to question the Pak Govt's recent overtures," he said.
Army Chief Gen Bikram Singh is taking stock of the situation, Army sources said in Delhi.
The incident could cast a shadow on the resumption of the Indo-Pak dialogue process. Prime Minister Manmohan Singh and his Pakistani counterpart Nawaz Sharif are slated to meet in New York next month on the sidelines of the UN General Assembly session.