Protesting the death of its supporter Buddhi Ram Mahato, 40, the Maoists closed down the district on Wednesday and announced an indefinite shut down of industries in the district.
Mahato, who sustained serious injury in the clash, was airlifted to Kathmandu for treatment and died at the Neuro Hospital, Kathmandu.
The Maoist protest left vehicles plying on the section of the East-West Highway off the road, leaving hundreds of passengers stranded.
One Nepali migrant worker a day dies in Malaysia