She was sunk off the coast of Diu, Gujarat, India by the Pakistan Navy Daphné-class submarine Hangor on 9 December 1971 during the Indo-Pakistani War of 1971.

[2][3] Pakistan India After the beginning of hostilities on 3 December 1971, Indian Naval radio detection equipment identified a submarine lurking about 35 miles (56 km) southwest of Diu harbour.

[2] One reason that may have prompted the decision to deploy two obsolete Blackwood-class frigates against a modern Daphne-class submarine was that the Indian Navy lacked sufficient numbers of anti-submarine aircraft.

[8] After a few minutes, Kirpan attacked Hangor with depth charges, as her anti-submarine mortars were no longer functional.

The memorial consists of a scale model of Khukri encased in a glass house, placed atop a hillock facing the sea.

The naval officer who led the inquiry into the sinking, Benoy Bhushan, has claimed that India's official naval history invented fictional accounts to cover up bungling and a surviving sailor from the frigate, Chanchal Singh Gill, has called for an investigation and withdrawal of gallantry awards to negligent officers in the squadron.