The NHE, according to the Friday judgment, has until today to notify the court whether it will defend the case.
The development is a partial victory for Kaumbi, who had approached the court seeking relief, arguing that he had been deliberately overlooked for the post despite being qualified for the job left vacant after the exit of Vinson Hailulu.
Kaumbi is a holder of a BSC Engineering degree, a BCom and a MSc Engineering degree, in addition to 24 years of working experience.
The ruling by the Labour Court comes amid allegations that the the Okahao Town Council CEO got the position at NHE because of his tribe.
Mukulu`s appointment, which was announced at the beginning of this month, is effect July 1.