You are looking at a law called the Armed Forces Discipline Act 1971. This law had a part called section 197 that was about what happens if someone is insane when they do something wrong. This part of the law was repealed, which means it was cancelled, on 1 July 2009 by the Armed Forces Discipline Amendment Act (No 2) 2007, specifically by section 67.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM404075.
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196: Insanity of certain persons while serving sentences of imprisonment under this Act, or
"What happens if you become mentally unwell while in military prison"
198: Powers of reviewing authority if person found unfit to stand trial, or
"What happens if an Armed Forces member is too unwell for a trial?"
