Section 311(2) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(2)A vacancy shall be considered to have occurred on the death, dismissal, discharge or disrating of the awardee or his transfer to pension establishment or promotion to commissioned rank or on forfeiture of the medal involving immediate stoppage of the annuity to the individual, and awards may be made against the vacancies thus caused in the permanent quota.