Section 329(2) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(2)A break in continuity of "Very Good" conduct is obligatory under the circumstances stated below :(a)When a sailor is punished by warrant or receives a sentence by court-martial which is at least the equivalent of a warrant punishment. The mere fact of conviction shall constitute a break in the continuity of "Very Good" conduct, regardless of the fact that a sentence is suspended before committal and subsequently remitted partially or wholly. If however a sentence is proved to be wholly unjustified and is quashed, break in the continuity of "Very Good" conduct shall not be obligatory.(b)When a discretionary character lower than "V.G." is awarded advisedly as a consequence of a number of minor offences, none of which of itself necessitated a break in continuity of "Very Good" conduct.(c)When a badge is intentionally not awarded when due or after the period of deferment.(d)When restoration of a badge has been intentionally delayed.(e)When on conviction by the civil authority any of the naval penalties, other than forfeiture of pay and time and stoppage of leave, are awarded.
