(1) The Government may, by notification in the Official Gazette, appoint officers of the Labour Department of and above the rank of Labour Officer as Appropriate Authority for compounding the offences committed under this Act, before their cognisance by the Court, on payment of a sum which may not be less than the minimum of the fine stipulated for such offence but, may extend to the maximum of the fine stipulated for such offence and may also include the cost of damage suffered by the complainant, by way of composition of the offence which such person is suspected to have committed:
Provided that no such compounding shall be permitted in the case of second and subsequent offences.
(2) On payment of such sum to the Appropriate Authority under sub-section (1), the offender, if, in custody shall be released and no further proceeding shall be taken for such offence.
Certain offences to be cognizable