Section 273(7) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(7)When transfer is necessary due to medical reasons (that is to say, a voluntary transfer as an alternative to invaliding, or where there is clearly a prospect of invaliding) sailors may normally be transferred subject to the above provisions in the equivalent [rank] [Substitued by S.R.O. 192, dated 10th September, 1973] with seniority counting from the date of transfer, except that ordinary [rank] [Substitued by S.R.O. 192, dated 10th September, 1973] shall retain existing seniority.Section IV. - Discharges