Dr. Leon T. Davis, the Walter Reed radiologist who has refused to continue practicing, yesterday lost the first skirmish in his court martial for refusing to obey orders.

Military Judge John W. Hanft, who is conducting Davis' trial at Fort McNair, rejected the argument that the doctor's trial should be called off because he is no longer in the Army since his contract has been breached.

Hanft said he would hear that argument after the formal part of Davis' court martial begins next Wednesday.

The militiary court also refused to order the Military District to Washington to subpoena several witnesses sought by Davis, including Vernon McKenzie, acting assistant defense secretary for health affairs, and Army Secretary Clifford L. Alexander.

The doctor, who has been under house arrest at the Walter Reed Inn across from the hospital, was released from custody by the judge.

Davis has opted to be tried by a military judge rather than by a jury of military officers.

Besides being charged with refusing to obey orders, Davis is accused of being absent without leave, desertion and missing a deployment to South Korea.

Davis has requested to be allowed to resign from the Army, a request that ultimately will be decided by Army Secretary Alexander.