Four policemen died in Panchthar Thursday in the first major Maoist attack on an occupied outpost in nearly six weeks, police said. At least three rebels are feared dead in an ensuing shoot-out that lasted for several hours.

Rebels started  resorting to individual acts of terrorism in towns and villages after suffering reverses following  search, cordon and destroy missions by security forces following the declaration of emergency on November 26 to quell the communist insurgency .

The emergency was slapped after two murderous rebel attacks on police and military installations in Ghorai in Dang and Salleri in Solokhumbu districts on November 23 and 25.

Army bomb disposal units defused a banner bomb in Thimi Thursday morning, officials said.