Section 39. Compounding or withdrawal of proceedings.

(1) The Director or Chief Executive Officer of the Authority, by whatever designation called, or any person authorised in this behalf by any of them by general or special order may either before or after the institution of the proceedings, compound any offence, excluding those referred to in section 37, made punishable by or under this Act or the rules or withdraw from such proceedings. (2) When an offence has been compounded, the offender, if in custody, shall be discharged, and no further proceedings shall be taken against him in respect of the offence compounded.