Section 32B of DCA : Section 32B: Compounding Of Certain Offences

Explanation using Example

Imagine a pharmaceutical company that has been charged with an offence under Section 28 of the Drugs and Cosmetics Act, 1940, for manufacturing a drug without a valid license. This offence is punishable with a fine but does not involve imprisonment. Before the case goes to trial, the company approaches the State Government and requests to compound the offence. The State Government, authorized by the Central Government, agrees and specifies a sum for the company to pay as per the rules made under this Act.

The company pays the specified sum, which does not exceed the maximum fine that could be imposed under the Act for this offence. Since this is the company's first offence, it is eligible for compounding. After the payment is made, the State Government ensures that no further legal proceedings are initiated against the company for this particular offence, and the matter is considered settled.