Section 380(3) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(3)An officer who may be found unsuitable for retention in the Reserves on account of any of the undermentioned causes shall be liable to immediate discharge or transfer to the Special List, as the case maybe, 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;(c)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 maybe, 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
