This irctc page mentions:
Name of the passengers whose names are partly confirmed/partly waitlist or partly RAC/partly waitlist, their names shall appear in charts including the waitlist passengers.
Names of the Passengers who are left out fully(all the passengers in the transaction) on waiting list after chart preparation,their names will be dropped and will not appear in charts. They are not allowed to board the train. If detected traveling in the train, they shall be treated as passenger traveling without ticket as per extant Railway Rules.Their cancellation shall be done by IRCTC after chart preparation and refund shall be arranged from Railways by IRCTC and credited to customer/Agent account electronically.