(1) Any offence of contravention of any of the provisions of this Act, punishable under the Act, may, on an application by the accused person, either before or after the institution of any prosecution, be compounded by the Authority or the member or the officer appointed by the Authority, as the case may be, for a sum of not less than fifty per cent., of the maximum fine provided for such offence, in such manner, as may be prescribed.
(2) Nothing contained in sub-section (1) shall apply to an offence committed by a person for the second time or thereafter within a period of three years from the date of commission of a similar offence,-
(a) which was earlier compounded; or
(b) for which such person was earlier convicted.
(3) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded.