On 7th September 1965, Sqn Ldr Devayya was a part of a formation of aircraft on a strike mission to Sargodha Airfield in Pakistan. He was the last aircraft of the mission to finish the attack and as he was turning away he was intercepted by an enemy F-104 Starfighter aircraft. After Sqn Ldr Devayya successfully evaded the missiles launched by the enemy aircraft, his attacker , flying a faster aircraft caught up with him and fired his guns damaging Sqn Ldr Devayya's aircraft.

Sqn Ldr Devayya, displaying true fighting spirit opted for aircombat with the superior enemy aircraft and shot down the attacker. In the process, he made the supreme sacrifice as he probably crashed or was killed.

For showing conspicuous gallantry in putting the safety of his colleagues before his own, and In electing to get into an aerial combat with the F-104 even while his own aircraft was damaged, Squadron Leader Devayya displayed Valour of the highest order. Sqn Ldr Devayya was awarded the Maha Vir Chakra Posthumously. Till date the only instance of a Posthumous MVC to the Indian Air Force.