Section 3: Circumstances in which pension may be granted

(1) No pension or gratuity shall be granted under this Act to an officer holding a regular commission except on his retirement from service in the Armed Forces in one of the following cases-
(a) at any time after serving for not less than fifteen years;
(b) on compulsory retirement under the provisions of section 5 (1) of this Act;
(c) on compulsory retirement for the purpose of facilitating improvements in the organisation of the armed forces by which greater efficiency or economy may be effected;
(d) at any time on medical evidence to the satisfaction of the Minister that he is incapable by reason of any infirmity of mind or body of discharging his military duties and that such infirmity is likely to be permanent;
(e) in the case of removal on the ground of inefficiency as provided in section 4 of this Act;
(f) on voluntary withdrawal after putting in not less than ten years but less than fifteen years continuous services as an officer:
Provided that-
(i) in respect of paragraphs (c) to (f) of this subsection, if the officer has served for not less than ten years but less than fifteen years before his retirement, he shall be entitled to only a gratuity as specified in the appropriate column of the Table in the First Schedule to this Act;
[First Schedule.]
(ii) if the officer has served for a minimum of three years but less than ten years before he is required to retire, he shall be entitled to an ex-gratia gratuity calculated on pro-rata basis at the rate of ten per cent for every completed year of service.
(2) No pension or gratuity shall be granted under this Act to an officer holding a short service commission except-
(a) to such an officer who has been injured without his own default in circumstances specifically attributable to the nature of his duty, the Minister being satisfied on medical evidence that as a result of such injury he is incapable of discharging his duties in the service and that injury is likely to be permanent; or
(b) to such an officer who was granted such commission without break of service after service in the ranks, on retirement from the service in one of the cases specified in subsection (1) of this section.
(3) No pension shall be granted under this Act to another rank except on his retirement from the service in one of the following cases-
(a) on or after the completion of fifteen years' qualifying service;
(b) on or after the completion of ten years' qualifying service and on medical evidence to the satisfaction of the Minister that he is incapable by reason of any infirmity of mind or body of discharging his duties and that such infirmity is likely to be permanent:
Provided that, the Minister may grant a pension to another rank who has not completed ten years' qualifying service, in a case where the other rank has been injured without his own default in circumstances specifically attributable to the nature of his duty, the Minister being satisfied on medical evidence that as a result of the injury he is incapable of discharging his duties and that the injury is likely to be permanent; but the pensions to be awarded in this case shall be two per cent of the annual pensionable salary subject to a maximum of thirty per cent of the terminal salary of the other rank concerned;
(c) on discharge in consequence of a reduction of the establishment of the armed forces in the case of another rank who has completed not less than fifteen years' service.
(4) No gratuity shall be granted under this Act to another rank except on his retirement from the service in one of the following cases-
(a) on or after the completion of ten years' qualifying service;
(b) at any time on medical evidence to the satisfaction of the Minister that he is incapable by reason of any infirmity of mind or body of discharging his duties and that such infirmity is likely to be permanent and is not self-inflicted.
(5) No other rank who has been granted a gratuity under the provisions of subsection (4) of this section or other retiring benefit in respect of his service shall be permitted to draw a pension in respect of the same period of service under subsection (3) of this section unless he shall first have refunded such gratuity or retiring benefit.