(1)  If, at any time after any clinical establishment has been registered, the authority is satisfied that,—

   (a)  the conditions of the registration are not being complied with; or

   (b)  the person entrusted with the management of the clinical establishment has been convicted of an offence punishable under this Act,

it may issue a notice to the clinical establishment to show cause within three months' time as to why its registration under this Act should not be cancelled for the reasons to be mentioned in the notice.

   (2)  If after giving a reasonable opportunity to the clinical establishment, the authority is satisfied that there has been a breach of any of the provisions of this Act or the rules made thereunder, it may, by an order, without prejudice to any other action that it may take against such clinical establishment, cancel its registration.

   (3)  Every order made under sub-section (2) shall take effect—

   (a)  where no appeal has been preferred against such order immediately on the expiry of the period prescribed for such appeal; and

   (b)  where such appeal has been preferred and it has been dismissed from the date of the order of such dismissal:

   Provided that the authority, after cancellation of registration for reasons to be recorded in writing, may restrain immediately the clinical establishment from carrying on if there is imminent danger to the health and safety of patients.