(1) A municipal council may, --

(a) compromise with any person who, in the opinion of the municipal council, has committed an offence punishable under this Act or any rule or bye-law thereunder and on such compromise, no proceedings shall be taken against such person in respect of such offence;

(b) with the sanction of the Deputy Commissioner, withdraw from prosecutions instituted under this Act or under any rule or bye-law made thereunder;

(c) compound any offence against this Act or against any rule or byelaw made thereunder which may, by rules made by the Government, be declared compoundable:

Provided that the Government may make rules to regulate the proceedings of persons empowered to compromise offences under this section:

Provided further that no offence shall be compoundable which is committed by failure to comply with a notice, order or requisition issued by or on behalf of the municipal council or of the Municipal Commissioner or Chief Officer unless and until the same has been complied with so far as the compliance is possible.

(2) Where an offence has been compounded, the offender shall bedischarged and no further proceedings shall be taken against him in respect of the offence so compounded.