(1) An officer who fails to undergo the requisite obligatory training may, without prejudice to any action which may be taken under Section 73 of the Act, be transferred to the Special List at the discretion of the Chief of the Naval Staff or be discharged from the Reserves at the discretion of the Government.
(2) An officer who fails to qualify for promotion within a reasonable length of time may either be transferred to the Special List at the discretion of the Chief of the Naval Staff or be discharged from the Reserves at the discretion of the Government.
(3) An officer who may be found unsuitable for retention in the reserves on account of any of the under mentioned causes shall be liable to immediate discharge or transfer to the Special List, as the case may be, after having been given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him: -
(a) unsatisfactory conduct whilst serving in any of Indian Navy Ships or Establishments;
(b) unsatisfactory conduct as naval officer while on the active list;
© unsatisfactory conduct whilst serving the Merchant Service or elsewhere in civil life;
Provided that it shall not be obligatory to give an opportunity of showing cause where the Government or the Chief of the Naval Staff, as the case may be, is satisfied that in the interests of the security of India or for some reason to be recorded in writing, it is not expedient to do so.
SECTION VIII – LEAVE, PAY AND ALLOWANCES