Composition of offences

(1) Any canal officer may accept from any person, against whom a reasonable suspicion exists that he has committed an offence punishable under this act or the rules made thereunder a sum of money not exceeding two hundred and fifty rupees, for composition of such offence. (2) On payment of such sum of money, the suspected person, if in custody, shall be discharged, and no further proceedings shall be taken against him in regard to the offence so compounded. (3) Rules may be made under this Act regulating the procedure of canal officers in compounding offences.