law: 8. Grant or refusal of licence.-
  On receipt of an application under section 7, the licensing authority shall make such inquiries as it may deem fit and where it is satisfied that-
  (a) the establishment or maintenance of the psychiatric hospital or psychiatric nursing home or the continuance of the maintenance of any such hospital or nursing home established before the commencement of this Act is necessary;
  (b) the applicant is in a position to provide the minimum facilities prescribed for the admission, treatment and care of mentally ill persons; and
  (c) the psychiatric hospital or psychiatric nursing home, will be under the charge of a medical officer who is a psychiatrist, it shall grant a licence to the applicant in the prescribed form, and where it is not so satisfied, the licensing authority shall, by order, refuse to grant the licence applied for: Provided that, before making any order refusing to grant a licence, the licensing authority shall give to the applicant a reasonable opportunity of being heard and every order of refusal to grant a licence shall set out therein the reasons for such refusal and such reasons shall be communicated to the applicant in such manner as may be prescribed.