Section 138: Compounding of offences
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 138 — Governs compounding of offences and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii)…
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for a term which is not more than one year and also with fine, may, on an application made, either before or after the institution of any prosecution, be compounded…
- (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— (i) of commission of a similar offence which was earlier compounded; or (ii) of commission of similar offence for which such person was earlier convicted.
- (3) Every officer referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Central Government for the purposes of offences relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters; and for the purposes of offences relating to other provisions of this Code…
- (4) Every application for the compounding of an offence shall be made in such form and in such manner as may be prescribed by the appropriate Government.
- (5) 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.
Provisos, explanations & qualifications
- No proviso/explanation was separately extracted from this section text.
Thresholds and timelines in the text
- Compounding of offences.— (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for a term which is not more than one year and also with fine, may, on an…
- (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— (i) of commission of a similar offence which was earlier compounded; or (ii) of commission of similar offence for which such person was earlier convicted.
- (7) Any person who fails to comply with the order made by the officer referred to in sub-section (1), shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in addition to such fine.
Actors expressly appearing in the text
Appropriate Government, Central Government
Full statutory text — Section 138
138. Compounding of offences.— (1) Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being
an offence—
(i) punishable with fine only; or
(ii) punishable with imprisonment for a term which is not more than one year and also with fine,
may, on an application made, either before or after the institution of any prosecution, be compounded by
an officer authorised by the Central Government for the purposes of offences relating to Chapter III and
Chapter IV and the rules, regulations or schemes made or framed under this Code relating to those Chapters,
by the Central Government; and for the purposes of offences relating to other provisions of this Code and
the rules, regulations or schemes made or framed under this Code relating thereto, by the appropriate
Government, in such manner as may be prescribed by the Central Government on payment by the offender
to the appropriate Government the amount—
(i) in the case of an offence punishable with fine only, the half of the maximum fine provided for
that offence; and
(ii) in the case of an offence punishable with imprisonment for a term which is not more than one
year and also with fine, the three-fourth of the maximum fine provided for that offence.
(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—
(i) of commission of a similar offence which was earlier compounded; or
(ii) of commission of similar offence for which such person was earlier convicted.
(3) Every officer referred to in sub-section (1) shall exercise the powers to compound an offence,
subject to the direction, control and supervision of the Central Government for the purposes of offences
relating to Chapter III and Chapter IV and the rules, regulations or schemes made or framed under this Code
relating to those Chapters; and for the purposes of offences relating to other provisions of this Code and the
rules, regulations or schemes made or framed under this Code relating thereto, by the appropriate
Government.
(4) Every application for the compounding of an offence shall be made in such form and in such manner
as may be prescribed by the appropriate Government.
(5) 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.
(6) Where the compounding of any offence is made after the institution of any prosecution, such
compounding shall be brought to the notice of the court in which the prosecution is pending in writing by
the officer referred to in sub-section (1), and on such notice of the compounding of the offence being given
to the court, the person against whom the offence is so compounded shall be discharged.
(7) Any person who fails to comply with the order made by the officer referred to in sub-section (1),
shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in
addition to such fine.
CHAPTER XIII
EMPLOYMENT INFORMATION AND MONITORINGHow to apply this provision
- Primary statutory test — (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for a term which is not more than one year and also with fine, may, on an application made, either before or after the institution of any prosecution, be compounded…
- Additional operative limb — (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— (i) of commission of a similar offence which was earlier compounded; or (ii) of commission of similar offence for which such person was earlier convicted.
- Numerical or timing control — Compounding of offences.— (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for a term which is not more than one year and also with fine, may, on an…
- Central Rule mapping — 54. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
- Prescribed-form link recorded in the corpus — XXIV. Confirm the current notified form/version before filing.
- Evidence file — retain facts and records proving the role/status of: Appropriate Government, Central Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
XXIV
Other sections cited in this text
Related Labour Hub resources
A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.
Worked example
When an event triggers compounding of offences, record the trigger date, competent authority, prescribed rule/form, filing or decision step, service/acknowledgement and final outcome. A statutory point to test is: “Compounding of offences.— (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for” Read the mapped Central Rule(s) 54. Use the current notified XXIV where the process requires it.
Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.
Q&A — Section 138
What does Section 138 of the Social Security Code cover?
Section 138 — Governs compounding of offences and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii)…
What is the main legal requirement or power in Section 138?
The first operative clause identified from the official text is: “(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for a term which is not more than one year and also with fine, may, on an application made, either before or after the institution of any prosecution, be compounded…” Read it with the remaining subsections and any proviso below.
Does Section 138 contain a proviso or explanation?
No standalone proviso or explanation was extracted from this section text. Check the full text below for clause-level qualifications.
What time limit, percentage or amount appears in Section 138?
The provision contains this numerical/time expression: “Compounding of offences.— (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), any offence committed for the first time, punishable under this Chapter, being an offence— (i) punishable with fine only; or (ii) punishable with imprisonment for a term which is not more than one year and also with fine, may, on an…” Apply it only in the clause and context in which it appears.
Which 2026 Central Rules are linked to Section 138?
The current concordance maps Section 138 to Central Rule(s) 54.
Is a prescribed form mapped to Section 138?
The current corpus records: XXIV. Confirm the current notified version before filing or service.
Is Section 138 currently operative?
The Code was commenced in stages: section 142 had earlier commencement, S.O. 5319(E) brought the specified provisions into force from 21 November 2025, and later commencement instruments must be read with the current India Code footnotes for the remaining clauses.
Source & verification trail
Act: Code on Social Security, 2020 — official India Code PDF ↗
Central Rules: Social Security (Central) Rules, 2026 — G.S.R. 344(E), 8 May 2026 ↗
Official library: Ministry of Labour & Employment — Labour Codes ↗
Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.