Section 133(b) in The Navy (Pension) Regulations, 1964
(b)(i)Except as provided for in regulation 166 family gratuity shall be payable to the recipient of the special family pension.(ii)if, on the date on which the sanctioning authority decides that the claim to a special family pension is admissible, all the members in the list of eligible heirs have died or become disqualified, the gratuity shall be payable only under the orders of the Central Government to the other heirs of the deceased sailor on production of a succession certificate.