A prosecution of the offence would not be launched in a Criminal Court by filing a criminal complaint whereby the hassles of appearing before a criminal court would not arise. If a prosecution had already been launched, the compounding of offence puts an end to such prosecution.
The compounding fee payable in consideration of the appropriate authority allowing the application for compounding is not same as a fine levied by a criminal court. A fine will be levied as the or part of the punishment for the offence committed preceded by the court convicting the accused of the offence.
However it protects public interest by ensuring that prior to compounding, the default is remedied by compliance of the applicable provision; by curbing compounding of repeat offences and above all by making it a discretionary power. If a case involves serious offences investigated by CBI or Serious Corporate Frauds, the compounding authority may refuse to allow applications for compounding offences arising from seemingly technical defaults!
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