Statement (1): Compensation is primarily associated with Civil Law, where the court orders the wrongdoer to pay damages to the aggrieved party. In Criminal Law, the main focus is on punishing the offender through imprisonment, fines, or other penalties. While compensation can be ordered in certain criminal cases (like under the Probation of Offenders Act or Section 357 CrPC), it is not the primary form of punishment. Hence, this statement is partially misleading and not strictly true.
Statement (2): Criminal Law prescribes punishments such as imprisonment (with or without fine), and in rarest of rare cases, the death penalty. Therefore, Statement (2) is correct.
Hence, only statement (2) is true.