Wow what a lovely old warhorse! very early 20th century I would think.
I think I would either keep it as is or renovate it taking the edge back past the chip & have it as a user, Id leave the length the same, as the chip is so large it implys it was tempered to at least that depth & very hard as well. Many modern kukri are tempered that hard but most old ones were made a bit softer so the edge would deform rather than chip & so they could be sharpened in the field.
As long as the metal isnt burnt in the grinding process I susspect the current temper taken back to depth of chip & with a convex edge will do fine.
Spiral
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