On 25 January, 1988, whilst 16 Kumaon was deployed in 'OP Pawan', Naib Subedar Khushi Ram, along with his platoon, was detailed to carry out a search-and-destroy mission in Area Murrukkandivu in the Valachenai Sector of Sri Lanka. In order to achieve surprise, the approach to the target was carried out, using an unconventional route through a river by means of boats. When the boats reached the vicinity of the object at about 1600 hours, six militants were escaping from a hut from that area. The boats had barely touched the landing site, when Naib Subedar Khushi Ram jumped out of the boat and started chasing the militants. Naib Subedar Khushi Ram's action was so sudden, that he did not even stop to think of his personal safety. The section quickly caught up with Naik Subedar Khushi Ram, and the chase to capture the militants continued. When the JCO had reached 400 metres from a bundh running North to South, he and his men came under a heavy automatic weapon fire from three points on the bundh and were pinned down in an open paddy field. Naib Subedar Khushi Ram ordered his RL detachment to engage the MMG position. As the volume of fire was unusually heavy and the area devoid of cover, the RL detachment was not able to take proper aim and the first two raids missed the target. Naib Subedar Khushi Ram engaged the target himself: He scored a direct hit, which silenced the MMG. Three militants were to run away from the gun emplacement whilst two were seen escaping.

The JCO then asked the section to cover his move and he himself, accompanied by Naik Daya Ram, followed to capture the MMG, when within 50 metre of the abandoned MMG, he was hit with a burst of auto rifle fire in his chest. He died soon after. Naib Subedar Khushi Ram demonstrated courage and valour of the highest order.