Prosecutions.

(1) An employer or other person who, without sufficient cause, fails to comply with any of the provisions of this Act or the rules framed thereunder shall, on conviction before a Magistrate, be punishable with fine not exceeding Rs. 5,000, and, when the offence is a continuing one, with fine not exceeding Rs. 50 per day during the period of the continuance of the offence. (2) A person shall not be proceeded against for an offence under this section except at the instance of the assessing authority. (3) The District Collector may, either before or after the institution of proceedings, compound any such offence. Explanation.—For the purposes of this section, “Magistrate” means a Judicial Magistrate of the First Class or a Judicial Magistrate of the Second Class specially empowered by the Government to try offences under this Act.