Section 279(1) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(1)Discharge S.N.L.R. (Service no longer required) shall not be considered as a punishment but only as the appropriate method of dispensing with the services of a man:(a)who is surplus to requirements,(b)whose retention would be to the detriment of the Service but who has not recently committed a specific offence for which dismissal would be an appropriate punishment in addition to any other sentence awarded.(c)on whom an adverse report has been forwarded in the post-enrolment verification report.