Section 123(4) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(4)Failure in Examinations.-(a)Cadets(i)Cadets who fail in the Cadet's Passing Out Examination shall normally be put back a term and then re-examined. Relegation of a term as a cadet shall entail loss of six months seniority for promotion to Midshipman.(ii)A second failure in examination shall entail liability to discharge from the Service.(b)Basic Engineering Course(i)An officer who fails to reach the required standard at any of the term progress examination during the Basic Engineering Course shall be put back one term.(ii)An officer who fails to qualify in the final examination of the Basic Engineering Course shall be put back a term at the conclusion of which he shall be re-examined, and if then successful, confirmed in the rank of Sub-Lieutenant with original seniority. Failure in final examination shall entail loss of seniority towards promotion to the rank of Lieutenant up to a maximum of 6 months.(iii)Second failure in the final examination of the Basic Engineering Course shall entail liability to discharge from the Service.(c)Specialisation Course(i)An officer who fails to qualify in the final examination of the Specialisation Course shall be put back a term at the conclusion of which he shall be re-examined. The officer shall also be penalised by the loss of up to a maximum of 3 months' time towards seniority as Lieutenant.(ii)An officer failing twice in the final examination of the Specialisation Course shall be liable to be discharged from the Service.(d)Basic Engineering and Specialisation Courses. - Officers who pass in their second attempt the final examination of the Basic Engineering Course or the Specialisation Course shall not be entitled to gain in time admissible under sub-regulation (5).