(1) When the Chief of the Naval Staff is satisfied that an officer is must unfit to be retained in the service due to inefficiency or physical disability, the officer-
(a) shall be so informed,
(b) shall be furnished with the particulars of all matters adverse to him, and
(c) shall be called upon to urge any reasons he may wish to put toward in favor of his retention in the service.
Provided that clause (a) (b)and (c) shall not apply if the Chief of the Naval Staff is satisfied that for reasons to be recorded by him in writing, it is not expedient practicable to comply with the provisions thereof;
Provided further that the Chief of the Naval Staff may not furnish to the officer any matter adverse to him if, in his opinion, it is not in the interest of the security of the state to do so.
(2) In the event of the explanation being considered by the Chief of the Naval Staff unsatisfactory, the matter shall be submitted to the Government for orders, together with the officer’s explanation and recommendation of the Chief of the Naval Staff as to whether the officer should be-
(a) called upon to retire; or
(b) called upon to resign.
(3) The Government after considering the explanations, if any, of then officer and the recommendation of the Chief of the Naval Staff, may call upon the officer to retire or resign, and on his refusing to do so, the officer may be compulsorily retired or discharged from the service on pension or gratuity, if any, admissible to him.