Section 92(3) in The Navy (Pension) Regulations, 1964
(3)Where a reservist elects to receive a gratuity in lieu of pension under this regulation, the amount of gratuity shall, in no case, be less than the service gratuity that would have accrued to him under regulation 89 based on the qualifying service in the Indian Navy, had he been discharged from the active list.Explanation. - The option to draw a gratuity in lieu of pension shall be exercised on discharge from the reserve, and the option once exercised shall be final; no pension or gratuity shall be paid until the option has been exercised.
