Is touching a person with the private part over clothes, without penetration, in a dream or while awake, considered an act of sodomy, and what should one do about it?

A Muslim should think well of his brother and beware of what leads to disobedience, such as indecencies, and block the gates of Satan. If something suspicious emanates from your friend, you should alert him. What happened is not considered sodomy if your friend was asleep, for the pen is lifted from the sleeper. However, if he did it intentionally, he is sinful, but his act does not amount to sodomy warranting the prescribed punishment (Hadd). We advise you to fear Allah and conceal what occurred. If it becomes clear to you that he acted intentionally, then advise him to fear Allah and stay away from indecencies.