Rule 38 — Manner of composition of offence

38. Manner of composition of offence– (1) The officer notified by the Central Government for the purposes of
compounding of offences under sub-section (1) of section 89 (hereinafter referred to as the “compounding officer”)
shall, send a notice to the accused in Form XV through the designated portal of the Ministry of Labour and
Employment.

 (2) The accused to whom the notice is served under sub-rule (1), may send the duly filled up application in Part III of
Form XV to the compounding officer electronically and deposit the compounding amount electronically, within fifteen
days of the receipt of the notice.

(3) Where the prosecution has already been instituted against the accused in the court of competent jurisdiction, the
accused may make an application to such court to allow composition of the offence against him and that court may,
after considering the application, allow composition of the offence by the compounding officer in accordance with the
provisions of section 89 and procedure specified in this rule.

(4) In case the accused is willing to compound by submitting the application under sub-rule (2), the compounding officer
shall compound the offence and––

      (a) in case the offence is compounded before the institution of prosecution, no complaint for prosecution shall
          be instituted against the accused;

      (b) in case the offence is compounded pending proceeding under section 85 of the Code, the compounding officer
          shall inform the composition to the officer referred to in that section, who shall, after such information, close
          the proceeding in respect of such offence against the accused; and

      (c) in case the offence is compounded after the institution of prosecution with the permission of the court, the
          compounding officer shall treat the case as closed and inform the compounding of the offence to the
          competent court by which such composition was allowed and after receiving such information, the court shall
          discharge the accused.

                                                   CHAPTER XIII

                                                 MISCELLANEOUS