The incident took place last night in which one Kapil was killed on the spot, they said adding that five bullet marks were found on his body which was recovered this morning.
Two others, Sumit and Anil were also injured in the incident.
While Sumit, who is suspected to be leader of one faction, managed to escape, Anil has been admitted at the Jawaharlal Nehru Medical College where his condition is stated to be stable, they said.
FIRs have been filed by both factions in which 13 persons have been named.
Raids are being conducted in different parts of the district to trace the accused but no arrest has been made so far, they said.