Nepal's army says it has found the bodies of 40 soldiers killed fighting Maoist rebels in a fierce gun battle Sunday in the west of the country. Seventy-six troops are still missing.
The rebels said Monday that 159 troops were killed and another 50 captured in the firefight, but the army has rejected that claim.
The bodies were found after hundreds of troops were rushed to the remote battle scene.
They are still scouring the rugged terrain in the Kalikot district, where the rebel attack on an army camp late Sunday triggered the fighting.
Maoist violence has escalated since Nepal's King Gyanendra seized all powers in February. The king said the move was necessary to quell the insurgency.
Some information for this report provided by AFP and Reuters.