(2)Where a licensee is unable to function as such for any reason or where a licensee dies, the licensee or, as the case may be, the legal representative of such licensee shall forthwith report the matter in the prescribed manner to the licensing authority and notwithstanding anything contained in sub-section (1), the psychiatric hospital or psychiatric nursing home concerned may continue to be maintained and shall be deemed to be a licensed psychiatric hospital or licensed psychiatric nursing home, as the case may be,(a)for a period of three months from the date of such report or in the case of the death of the licensee from the date of his death, or(b)if an application made in accordance with sub-section (3)for a license is pending on the expiry of the period specified in clause (a), till the disposal of such application.
