Section 181(8) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(8)If a candidate for Branch Rank should misconduct himself in a manner which would disqualify him for the Long Service and Good Conduct Medal, his misconduct shall be reported individually to the Chief of the Naval Staff through the Captain, Naval Barracks (Drafting Office), to whom form I.N. 708 "half-yearly report of candidates for Branch Rank" is forwarded and his name shall be removed from the roster for promotion.If a candidate is found unsuitable for promotion, this fact shall also be reported to the Chief of the Naval Staff through the Captain, Naval Barracks (Drafting Office), whether or not he has previously been recommended.