Section 399(1) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(1)In the event of mobilization or an Emergency when the Reserves are called up, payment of retaining fee shall cease as from that date, and no subsequent payment shall be made in respect of such officers as are called up. Payment may be resumed, however, on the authority of the Chief of the Naval Staff, when the state of Emergency is declared to have ceased and officers are released from actual service and retransferred to the Reserves.