Since in Psychiatry , treatment is done through counselling and medicines are prescribed according to it, my question is what would be the most appropriate study design in the subject of psychiatry.
I'd say both methods are feasible, whether one, the other, or both. It depends on the research objectives, which will determine whether the approach is qualitative or quantitative cross-sectional, or an intervention evaluation.
The nature of the study design (cross-sectional or clinical trial) depends on the research question being asked and the methodology used to investigate it, rather than on the practice of counseling itself.