R

CHA P TE

14
The Information Technology Act, 2000

OU T L IN E
1. Introductohy
2. Scope of the Adt
3. Definitiohs
4. Digital Signature and Electronic Sigrabare
5. Electronic Govermance
6. Atribution, Acknowledgement and Despatch of Electronic Records
7. Secure Electronic Records and Secure
Electronic Signatures
8. Regulation of Certilying Authorities
9. Electronic Signature Certificates
10. Duties of Subscribers
11. Penalties, Compensation and Adjudicatijon
12. Cyber Appellate Tribund
13. Offenkes
14. Intermediaries not Liable in certain Cases
15. Miscellaneous
16. Gaining Practical Experience
- Rules Framed under the Act

- Internet Corporation for Assigned Names and Numbers (ICANN)

World Intellectual Property Organisation (WIPO)

Some Judgements Conceming E-commerce
- Integrating IT Act with other Allied Laws

- Self-test Questions

PARA 14.1 INTRODUCTORY

The evolution of electronic digital technology and new communication systems have brought
of business
about arevolution for all of us. Business in no exception as an increasing number
transactions are being conducted with the help of computers. The computers help in creatingg
and information in electronic form rather than in traditional
transmitting, storing retrieving
(documentary) form. The business transactions through electronic form has popularly
paper have many laws
as electronic commerce or e-commerce. At present we
cpme to be known
which govern paper-based records and documents which are signed and witnessed by
 512
Business Law
individuals. The Indian Contract Act 1872, and the Negotiable Instruments
such Act, 1881 two
are
examples. But with the onsct of e comnerce, there is a need for some new laws to tackle
the
unique problems involved therein and for its smooth functioning.
In this context certain
words have becone very common these
'cyber' 'cybernetics', 'electronic word', 'information days.
Some of them are:

cyber' relates to machines. The New Shorler Oxford technology, 'domain name'. The word
science of systems of control and Dictionary defines 'cybernetics' as the
word 'electronic' is defined as
communications in living
organisations and machines. The
'using the electronic transmission or storage of
by television or computer. A 'domain name' is the internet
information, as
or a
geographical address equivalent of telephone number
a

Cyber law refers to that law which is concerned with

communications and automatic control
systems. Thus cyber law may be classified as Communications
Law. The former Law and Information
regulates telecommunications and broadcasting, including radio,Technology
telephony and cable. The latter regulates transactions television,
The communication
laws in existence in India at relating to
computers and the internet.
the Wireless present are: The Indian Telegraph Act, 1885,
Telegraphy Act, 1933, and the Cable Television Networks
In this
chapter we are concerned with the Information Regulations Act, 1995.
For tackling some of the
Technology Law.
unique problems in the case of cybernetics' and the smooth flow of
ecommerce, laws are to be made. These
problems may relate to:
() Jurisdiction-which court or forum will decide
disputes between the service
(iü) Domain names-how to allot them and resolveproviders
the users and between users. and
relating to deceptively similar names. (ii) Intellectual any disputes
safeguarded. (iv) Contracts-how do we bind the parties toproperty rights-how will they be
paperless contracts. (v) Privacy
are data
private and what happens if it is misused or tampered with. (vi)
punish. (vii) Taxation-who will tax, what will be taxed Cyber
do we police and crime-how
and at what rate
(vii) Convergence-how will broadcast frequencies will be allocated.
Some of these problems can be taken care of
by the following laws in existence in India:
() The Indian Contract Act, 1872 (ii) The Indian Penal Code, 1860
(iv) the Patents
(ii) The Evidence Act, 1872
Act, 1970 (v) The Copyright Act, 1957 (vi) The Trade Marks
Act, 1999 (vii) The
Design Act, 2000 (viii) The Consumer Protection Act, 1986 (ix) The law of
Torts
In USA, however, the
following laws have been
passed for
regulating e-commerce
(i)
Telephone Consumer Protection Act, 1991; (ii) Telemarketing and Consunmer Fraud and
Abuse Prevention Act; (ii) Communications
Consumer Protection Act,
Decency Act, 1996; (iv) Anticyber Squatting
1999; (v) Federal Trademark Dilution Act, 1999; (vi) Child online
Protection Act (vii) Electronic Communications
Privacy Act (vii) Digital Millennium Copyright
Act, 1998;(ix) Telecommunication Act, 1996; Electronic
(x) Signatures
in Global and International
Commerce Act, 2000.
Some of these laws are
sequel to the resolution of UN General Assembly. The United Nations
Commission on International Trade Law (UNCITRAL), considering the
of transactions in international increasing number
trade carried through e-commerce, adopted a Model Law on
Electronic Commerce in 1996, which the UN General Assembly recommended to all member
 The lnformation Technology Act, 2000
Ountries for favourable consideratlon. The Governnent of Indin, bein, u sigiuatory lo the
odel Law have to revise its existing; luws aceordingly. Keeping in view the urgent need to
bring suitable amendments to the exlsting laws to facliltate e-commerce and with a view tu
1acilitate electronic governance, the Central Government has taken certain steps. The legal
infrastructure being built is not only for facilitating e-commerce but also for increasing
Convergence between telecommunications, computers, television and electronics. In this
connection, first of all, the Telecom Regulatory Authority of India Act, 1997 was passed.
Then the Information Technology Act, 2000 (IT Act) was passed which is based on the
UNCITRAL Model Law on Electronic Commerce.
The IT Act deals with the following subjects: (i) Secure electronic transactions to facilitate e
commerce (ii) attribution of electronic messages (ii) legal status to electronic signature and
electronic records by providing for the appointment of a Controller of Certifying Authority
The Controller is authorised to issue licences to certifying authorities for issuing Digital
Signature Certificates. (iv) offences regarding electronic records namely, tampering with
computer source documents, hacking, obscenity by breach of confidentiality and privacy
publishing false Digital Signature Certificates, publication of Digital Signature Certificates
for fraudulent purpose. These offences would be tried under the Code of Criminal Procedure
1973 but with the safeguard that only a police officer of the rank of Deputy Superintendent of
Police or above can investigate such offences. (v) privacy and confidentiality of information,
(vi) filing of electronic records with and maintenance by government (vi) regulatory
infrastructure by providing for a Controller of Certifying Authorities, a Cyber Regulations
Appellate Tribunal and a Cyber Regulations Advisory Committee (vii) Exclusion of Liability
of Network Service Providers (ISPS) for content on the internet where he has exercised all
due diligence to prevent the offence.

PARA 14.2 SCOPE OF THE ACT

14.2.1 Objectives of the Act. The objectives of the Act as reflected in the preamble to the Act
are:

means of electronic data

i) to provide legal recognition for transactions carried out by
referred to as
interchange and other means of electronic communication, commonly methods of
"electronic commerce", which involves the use of alternatives to paper-based
communication and storage of information;
(ü) to facilitate electronic filing of documents with the government agencies;
methods of storage of data.
ii) to facilitate electronic storage of data in place of paper-based
Evidence Act, 1872, the Banker's Book
(iv)to amend the Indian Penal Code, the Indian
Evidence Act, 1891, and the Reserve Bank of India Act, 1934, and
incidental thereto.
(v) provide for matters connected therewith or
to
resolution adopting the Model Law on
The General Assembly of the United Nations passed a
Commission on International Trade
Electronic Commerce adopted by the United Nations
the States give favourable consideration
Law. The said resolution recommended inter alia that
for uniformly
to the said Model Law when they enact or
revise their laws, in view of the need
 Business Law
514
methods ol communication and storage
to paper-bascd
law applicable to alternatives effect to the
ofthe Infornmation Technology Act, 200 has beern passed to give
of information. The Cioverninent services by means of reliable
efficient delivery ol
said resolution and to promote
electronic records.
to the whole of India and save as
14.2.2 Commencement, and Application. It externds
offence or contravention thereunder
otherwise provided in this Act, it applies to arny
committed outside India by any person.
This Act is not applicable to the following

() a negotiable instrument as defined in s.13 of the Negotiable Instruments Act, 1881;

(i) a power-of-attorney as defined in s.1A of the Power of Attorney Act, 1882;

ii) a trust as defined in s.3 of the Indian Trust Act, 1882;

(iv) a will as defined in s.2(h) of the Indian Succession Act, 1925 including any other
testamentary disposition by whatever name called;
(v)any contract for the sale or conveyance of immovable property
or any interest in such
property;
(vi) any such class of documents or transactions as may be notified by the Central Government
in the Official Gazette.
Promissory notes, bills of exchange and cheques are transferred by endorsement and delivery.
Ifa cheque is dishonoured, the payee can file a crinminal complaint under s.138 of Negotiable
Instruments Act, 1881. Hence, the IT Act has excluded such instruments. Under the Indian
Registration Act, a power of attorney requires attestation, which is not possible for electronic
records. Hence, these instruments are excluded from the IT Act. A will requires attestation by
at least two witnesses, which may not be possible by means of electronic records. Hence,
wills and codicils are excluded from the Act. In the case of immovable property certain
documents are required to be compulsory registered with competent authorities of the
government. Hence, these documents are excluded.
The President of India gave his assent to the Act on June 9, 2000.

PRA 14.3 DEFINITIONS

Section 2 defines the various expressions occurring in the Act. These are given below:
(a) "access" with its grammatical variations and cognate expressions means gainng entry
into, instructing or communicating with the logical, arithmetical, or memory function
resources of a computer, computer system or computer network.

(6) addressee" means a person who is intended by the originator to receive the electronic
record but does not include
any intermediary.
(c) "adjudicating officer" means adjudicating officer appointed under s.46 (1).
(d) "affixing electronic signature" with its grammatical variations and cognate expressions
means
adoption of any methodology or procedure by a person for the purpose ot
authenticating an electronic record by means of electronic signature.
The Information 515
Technology Act, 2000
matter:
eappropriate government" means as respects any
enumerated in List II of the Seventh Schedule to the Constitution;
1
() relating to any State law enacted under List Il of the Seventh Schedule to the Constitution;

(i) the State Government and in any other case, the Central Government.
of a secure key pair consisting of a private
( "asymmetric crypto system" means a system to the
key for creating a digital signature and a public key veriky digital
signature.
has been granted a licence to issue a Digital
(g) "Certifying Authority", means a person who
Signature Certificate under s.24.
issued by a Certifying Authority to
(h) "certification practice statement" means a statement
specify the practices that the Certifying Authority employs in issuing Digital Signaure
Certificates.
"Communication device" means cell phones personal digital assistance or
combination
(ha)
of both or any other device used to communicate, send or transmit any text, video, audio or

image.
(1) "computer" means any electronic magnetic, optical or other high-speed data processing
device or system which performs logical, arithmetic, and memory functions by manipulations
of electronic, magnetic or optical impulses, and includes all input, output, processing, storage,
which are connected or related to the computer
computer software, or communication facilities
in a computer system or computer network.
interconnection of one or more computers or computer
) "computer netuwork" means the
systems or communication device through:
wireless other communication
the use of satellite, microwave, terrestrial line, wire,
or
)
media; and
or
of two or more interconnected computers
ii) terminals or a complex consisting maintained.
communication device whether or not the interconnection is continuously
network, data,
(k) "computer resource" means computer, computer system, computer
computer database or software.
means a device or collection of
devices including input and output
() "computer system" and capable of being
devices and excluding calculators which are not programmable
support electronic
used in conjunction with external files, which contain computer programmes, and
arithmetic, data storage
instructions, input data, and output data, that performs logic,
retrieval, communication control and other functions.
Authorities appointed under s.17(1).
(m) "controller" means the Controller of Certifying under s.48.
established
the Cyber Appellate Tribunal
(n) "cyber appellate tribunal" means
from where access to the
internet is offered by any
(na) "Cyber cafe" means any facility
of business to the members of the public.
person in the ordinary
course
instructions
facts, concepts or

(o) "data" means a representation of information, knowledge, intended to

in formalised manner, and is
prepared or have been prepared
a
which are being
(p) "digital signature" means authentication of any electronic record by a subscriber by means
of an electronic method or procedure in accordance with the provision of s.3.

(q) "digital signature certificate" means a Digital Signature Certificate issued under s.35(4)
(r) "electronic form" with reference to information means any information generated, sent,
received or stored in media, magnetic, optical, computer memory or similar device.

(s) "electronic gazette" means official gazette published in the electronic form.

(t) "electronic record" means data, record or data generated image or sound stored, received
or sent in an electronic form or microfilm or computer-generated micro fiche.

(ta) "electronic signature" means authentication of any electronic record by a subscriber by

means of the electronic technique specified in the second schedule and includes digital
signature.
(t5) "electronic signature certificate" means an electronic signature certificate issued under
section 35 and includes digital signature certificate.

(u) "function" in relation to a computer, includes logic, control, arithmetical process, deletion,
storage and retrieval and communication or telecommunication from or within a computer.

(ua) "Indian Computer emergency response team" means an agency established under section
70(B(1).
(v) "information" includes data, text, images, sound, codes computer
T
programmes, software
and databases.
(w) "intermediary" with respect to any particular electronic records, means any person who
on behalf of another person receives, stores or transmits that record or provides any service
with respect to that record and includes telecom service providers, network service providers,
internet service providers, web-hosting service providers, search engines online payment
sites, online-auction sites, on-line market places and cyber cafes.
(x) "key pair" in an asymmetric crypto system, means a private key and its mathematicaly
related public key, which are so related that the public key can verify a digital signature
created by the private key.
(y)"law includes any Act of Parliament or of a State L.egislature, Ordinances promulgatecd
by the President or a Governor, as the case may be, Regulations made by the P'resident under
article 240, Bills enacted as President's Act under sub-clause (a) of clause (1) of article 357 of
the Constitution and includes rules, regulations, bye-laws and order's issued or made
thereunder.
(2) "licence" means a licence granted to a Certifying Authority urnder s.24.
The Information Techrnology Act, 2000 515

matter:
(eappropriategovernment" means as respects any
enumerated in List II of the Seventh Schedule to
the Constitution;
(
(i) relating to any State law enacted under List Il of the Seventh Schedule to the Constitution;

ii) the State Government and in any other case, the Central Government.
(f) "asymmetric crypto system" means a system of a secure key pair consisting of a private
and a
key for creating digital signature
a key to verify the digital signature.
public
(g) "Certifying Authority", means a person who has been granted a licence to issue a Digital

Signature Certificate under s.24.

(h) "certification practice statement" means a statemernt issued by Certifying Authority
a to
specify the practices that the Certifying Authority employs in issuing Digital Signa'ure
Certificates.
(ha) "Communication device" means cell phones personal digital assistance or combination
audio or
of both or any other device used to communicate, send or transmit any text, video,
image.
high-speed other data processing
) "computer" means any electronic magnetic, optical
or
device or system which performs logical, arithmetic, and memory functions by manipulations
of electronic, magnetic or optical impulses, and includes all input, output, processing, storage,
facilities which are connected or related to the cómputer
computer software, or communication
in a computer system or computer network.
the interconnection of one or more computers or computer
G) "computer network" means
systems or communication device through:
wireless other communication
the use of satellite, microwave, terrestrial line, wire,
or
)
media; and
or
of two or more interconnected computers
(i) terminals or a complex consisting
communication device whether or not the interconnection is continuously maintained.
network, data,
(k) "computer resource" means computer, computer system, computer
software.
computer database or

a device or including input and output

collection of devices
(1) "computer system"
means
and capable of being
calculators which are not programmable
support devices and excluding electronic
which contain computer programmes,
used in conjunction with external files, data storage and
data, and output data, that performs logic, arithmetic,
instructions, input
communication control and other functions.
retrieval,
under s.17(1).
(m) "controller" means the Controller of Certifying Authorities appointed
Tribunal established under s.48.
(n) "cyber appellate
tribunal" means the Cyber Appellate
from where access to the
internet is offered by any
(na) "Cyber cafe" m e a n s any facility members of the public.
course of business to the
person in the ordinary instructions
facts, concepts or
"data" means a representation of information, knowledge, and is intended to
(o) a formalised
manner,
or have been prepared in
which are being prepared
 516 Business Law
be processed, is being processed or has been processed in a computer system or computer
network, and may be in any form (including computer printouts, magnetic or optical storage
media, punched cands, punched tapes) or stored internally in the memory of the computer
(p) "digital signature" means authentication of any electronic record by a subscriber by means
ofan electronic method or procedure in accordance with the provision of s.3
q) "digital signature certificate" means a Digital Signature Certificate issued under s.35(4)
(r) "electronic form" with reference to information means any information
received stored in media,
generated, sent
or
magnetic, optical, computer memory or similar device.
(s) "electronic gazette" means official gazette published in the electronic form.
t) "electronic record" means data, record or data
or sent in an electronic form or
generated image or sound stored, received
microfilm or computer-generated micro fiche.
(ta) "electronic signature" means authentication of
any electronic record by a subscriber by
means of the electronic
technique specified in the second schedule and includes d1gital
signature.
(tb) "electronic signature certificate" means an electronic
section 35 and includes signature certificate issued under
digital signature certificate.
(u) "function"in relation to a computer,
includes logic, control, arithmetical process, deletion,
storage and retrieval and communication or telecommunication from within
or a
computer
ua) "Indian Computer emergency response team"means an agency established under section
70(B(1).
(v) "information" includes data, text, images, sound, codes
and databases. computer programmes, sottware
(w) "intermediary" with respect to any particular electronic records, means any person who
on behalf of another person receives, stores or
transmits that record or provides any service
with respect to that record and includes telecom
service providers, network service
internet service
providers, web-hosting service providers, search engines onlineproviders,
payment
sites, online-auction sites, on-line market
places and cyber cafes.
(x)"key pair" in an asymmetric crypto system, means a
related public key, which are so related private key and its mathematically
that the public key can
created by the private key. verity a digital signature
(y) "law" includes any Act of Parliament or of a State
by the President or a Governor, as the case may be, Legislature, Ordinances promulgated
article 240, Bills enacted as Regulations made by the President under
President's Act under sub-clause (a) of clause () of article 357 ot
the Constitution and includes rules,
regulations, bye-laws and order's issued or made
thereunder.
() "licence" means a licence granted to a Certifying Authority under s.24.
 The Information 517
Technology Act, 2000
za) "originator" means a person who sends, generates, store or transmits any electronic
message or causes any electronic message to be sent, generated, stored or transmitted to any
other person but does not include an intermediary.
under this Aet.
(Zb) prescribed" means prescribed by rules made
(zc) "private key" mearns the key of a used pair used to create a digital signature

(zd) "public key" means the key of a key pair used to verily dligital signature and listed in the
Digital Signature Certiticate.
(ze) "secure system" means computer hardware, software and procedure that-

(a) are reasonably secure from intrusion and misuse;

b) provide a reasonable level ofreliability and correct operation;
and
(c)are reasonably suited to performing the intended functions;
(d) adhere to generally accepted security procedures.
the Central
(zt) "security procedure" means the security procedure prescribed under s.16 by
Government.
person in whose the Electronic Signature Certificate is issued.
(zg) "subscriber"means a name

with its
(zh) "verify" in relation digital signature, electronic record or public key,
to a
means to determine whether:
grammatical variations and cognate expressions
the use of private
() the initial electronic record was affixed with the digital signature by
key corresponding to the public key of the subscriber;
has been altered since such electronic
(ü) the initial electronic record is retained intact or

record was so affixed with the digital signature.

ELECTRONIC SIGNATURE
PARA 14.4 DIGITAL SIGNATURE AND

Section 3 provides as follows:

subscriber may authenticate an electronic record by affixing his digital signature.

(1) Any
the use of asynmmetrie
electronic record shall be effected by
(2) The authentication of the electronic record
and transform the initial
crypto system and hash function which envelop
record.
into another electronic into
translation of one sequence
of bits
The "hash function" means an algorithm mapping or electronic record yields
set known "hash result" such that an
as
another, generally smaller executed with the same
electronic record as
time the algorithm is
the same hash result every reconstruct the original
electronie
to derive or
its input making it computationally infeasible (a) can records
that two electronic
the algorithm; (b)
record from the hash result produced by
result using the algorithm.
produce the same hash the electronic record.
the subscriber can verity
the of a public key of
(3) Any person by
use
 518 Business Law
(4) The private key and the public key are unique to the subsCriber and constitute a functioning

key pair.
Section 3A makes provision as regards electronic signature and its authentication.

(1) Notwithstading anything contained in section 3, a subscriber may authenticate any

electronic record by such electronic signature or electronic authentication technique which
(a) is considered reliable; and (b) may be specified in the second schedule.
Any electronic signature or electronic authentication technique shall be considered reliable
if
(a) the signature creation data or the authentication data are, within the context in which
they are used, linked to the signatory or, as the case may be, the authentication and to no
other person;
(6) the signature creation data or the authentication data were, at the time of signing, under
the control of the signatory or, as the case may be, the authenticator and of no other person;

()any alteration to the electronic signature made after affixing such signature is detectable;
(d) any alteration to the information made after its authentication by electronic signature is
detectable; and
(e) it fulfills such other conditions which may be prescribed.

(3) The Central Government may prescribe the procedure for the purpose of ascertaining
whether electronic signature is that of the person by whom it is purported to have been
affixed or authenticated.
(4) The Central Government may, by notification in the Official Gazette, add to or omit any
electronic signature or electronic authentication technique and the procedure for affixing
such signature from the second schedule.
However no electronic signature or authentication technique shall be specified in the Second
Schedule unless such signature or technique is reliable.
Every such notification in the office gazette shall be laid before each House of P'arliament.

PARA 14.5 - ELECTRONIC GOVERNANCE

In this part we shall explain sections 4 to 16.

14.5.1 Legal Recognition of Electronic Records (s.4). Where any law provides that information
or any other matter shall be in writing or in the type, written or printed form, then
to have
notwithstanding anything contained in such law, such requirement shall be deemed
beensatisfied if such information or matter is (a) rendered or made available in an electronic
form; and (b) accessible so as to be usable for a subsequent reference.
14.5.2 Legal Recognition of Electronic Signatures (s.5). Where any law provides that
information or any other matter shall be authenticated by affixing the signature or any

document shall be signed or bear the signature of any person then, notwithstanding anything
contained is such law, such requirement shall be deemed to have been satisfied, if such
 usiness Law
528
reasonable care to retain
shall exercise
14.10.4 Control of Private Key (s.42). Every subscriber
listed in his Digital Signature
the public key
control of the private key corresponding to if the private key
its disclosure. Also
Certificate. Also he will take all steps to prevent
has been compromised, then the
to the public key listed in the certificate
corresponding
to the Certifying Authority.
subscriber shall communicate the same

COMPENSATION AND ADJUDICATION

PARA 14.11 PENALTIES,
and adjudication.
Sections 43 to 47 deal with penalties, compensation
etc. (s.43).
to Computer, Computer System,
14.11.1 Penalty and Compensation for Damage who is in charge of a
owner or any other person
A person who without permission of the to pay damages by way of
or computer
network shall be liable
computer, computer system (a) accesses or
affected thereby, if he does any of the following:
compensation to the person network or computer resource;
or computer
s e c u r e s a c c e s s to such computer,
computer system from it, including
database ofinformation
extracts any data, computer
(b) down loads, copies or
removable storage medium; (c)
introduces or causes

information o r data held or stored in any

virus intoit; (d)damages or c a u s e s
contaminant or computer
to be introduced any computer database or any other programmes residing
etc., data, computer denies or
to be damaged any computer,
causes disruption of any computer, etc.; (f)
or
in such computer, etc.; (e) disrupts authorised to access any computer,
etc.; (g) provides
of access to any person contravention of the
c a u s e s the denial etc., in
facilitate a c c e s s to a computer,
to account of another
any
assistance to any person
of by a person to the
charges the services availed deletes or alters
provisions of this Act; (h) etc.; (i) destroys,
with or manipulating any computer, or utility or affects it
diminishes its value
person by tampering or
resource
steal,
to
information residing in a computer
or alters or causes
any person
any steal, conceals, destroys with an

by any m e a n s ; ()
resource

injuriously code used for a computer

source
or alter any computer
conceal, destroy
to
intention to cause damage. instructions that are designed: (a)
of computer or
contaminant"
means any set
within a computer, etc.;
"Computer o r programme
residing
transmit data etc.
record, of the computer,
modify, destroy, the normal operation
to usurp concepts or
(b) by any
means
information, knowledge, facts,
of in a
database" m e a n s
a representation or have
been prepared
"Computer that a r e being prepared in a
audio, video intended for use
in text, image, etc, and a r e
a computer,
been produced by
instructions

manner or have
formalised
that
computer, etc.
information,
data or programme or
instruction, resource

virus"means any computer performance

of a computer
"Computer affects the data o r
degrades o r adversely when a programmne,

destroys, damages, resource

and operates resoturce.

another computer that computer

attaches itself
to
event takes place in
some other resource

executed or computer
instruction is or rearrange
any
modify
delete, add,
means to destroy, alter,
"Damage" design
and
commands,
by any means.
computer
the listing of
programmes,

code" means form.

source
resource
in any
"Computer of computer
and p r o g r a m m e analysis
layout
The Information Technology Act, 2000 529

14.11.2 Compensation for failure to protect data (s.43A). Where a body corporate, possessing,
dealing or handling any sensitive personal data or information in a computer resource which
t owns, controls or operates, is negligent in implementing and maintaining reasonable security
practices and procedures and thereby causes wrongful loss or wrongful gain to any person,
such body corporate shall be liable to pay damages by way of compensation to the person so
affected.
14.11.3 Penalty for Failure to Furnish Information, Return, etc. (s.44). If any person who is
required under this Act, etc., to (a) furnish any document, return or report to the controller
or the certifying Authority fails to furnish the same, he shall be liable to a penalty not exceeding
one lakh and fifty thousand for each such failure; (b) file any return or furnish any
information, books or other documents within the times specified therefor in the regulations
fails to file return or fumish the same within the time specified therefor in the regulations, he
shall be liable to a penalty not exceeding 5000 for every day during which such failure
continues; (c) maintain books of accounts or records fails to maintain the same, he shall be
liable to a penalty not exceeding 10,000 for every day during which the failure continues.
14.11.4 Residuary Penalty (s.45). Whoever contravenes arny rules or regulations made under
this Act, for the contravention of which no penalty has been separately provided, shall be
liable to pay a compensation not exceeding 25000 to the person affected by such
contravention.
14.11.5 Power to Adjudicate (s.46). For the purposes of adjudicating whether any person has
committed a contravention of any of the provisions of this Act or of any rule, regulation,
direction or order made thereunder, the Central Government shall appoint an officer not
below the rank of a director to the Government of India or an equivalent officer of a state
govermment to be an adjudicating officer for holding an enquiry in the manner prescribed by
the Central Government. But no person shall be appointed as an adjudicating officer unless
he possesses such experience in the field of Information Technology and legal or judicial
experience as may be prescribed by the Central Government. Further every adjudicating
officer shall have the powers of a civil court which are conferred on the Cyber Appellate
Tribunal under s.58, and (a) all proceedings before it shall be deemed to be judicial proceedings
under the Indian Penal Code; (b) shall be deemed to be a Civil Court for the purposes of
sections 345 and 346 of the Code of Criminal Procedure, 1973.
The adjudicating officer shall exercise jurisdiction to adjudicate matters in which the claim

for injury or damage does not exceed rupees five crore. And the jurisdiction in respect
of the
court.
claim for injury or damage exceeding rupees five crore shall vest with the competent

The Adjudicating officer shall the person committing a contravention a reasonable

give
oticer, if satisfied
opportunity for making representation in the matter. AIso the Acdjudicating
that the person has committed the contravention, he may impose
such penalty or award

such compensation as he thinks fit.

14.1.6 Factors to be Taken into Account by the Adjudicating Officer (s.47). While adjudging
the quantum of compensation the Adjudicating officer shall have due regard to the tollowing
made as
factors, namely; (a) the amount of gain of unfair advantage, whenever quantitiable,
 Business Law
530
to person as a result of the default;
a the detault: (6) the amount of loss caused any
result ot
(c)the reppetitive nature of the default.
TRIBUNAL
PARA 14.12 CYBER APPELLATE
Sections 48 to 64 deal with the
establishment, etc., of the Cyber Appellate Tribunal.
Government shall,
Tribunal (s.48). The Central
14.12.1 Establishment of Cyber Appellate as the Cyber Appellate
tribunals to be known
notitication, establish one or more appellate
by
Tribunal shall consist of a
Tribunal (s.49). The Tribunal
14.12.2Composition of Cyber Appellate
Central Government may, by
other members, as the
chairperson and such number of
notification in the official Gazette, appoint.
shall be made by the Central
The selection of and members of the Tribunal
chairperson
of India.
Government in consultation with the Chief Justice
by the Benches
Tribunal may be exercised
The jurisdiction, powers and authority of the
thereof.
with one or two members.
A Bench may be constituted by the Chairperson
Cerntral
such other places as the
of the Tribunal shall sit at New Delhi and at
The Benches the Tribunal specify.
with the chairperson of
Government may, in consultation
which each Bench of
Government shall specify the areas in relation to
Further the Central
the Tribunal may exercise jurisdiction.
Members of the Tribunal (s.50).
as Chairperson and
14.12.3 Qualifications for Appointment or has been, or
for appointment as a chairperson unless he is,
A person shall not be qualified members of the Tribunal, except the judicial
of a High court, The having
is qualified to be, a judge Government from amongst persons,
by the Central
member, shall be appointed telecommunication,
in, information technology,
knowledge of, and professional experience
or consumer affairs.
industry, management Government from
members of the Tribunal
shall be appointed by the Central and has held the
The Judicial the Indian Legal Service
who is orhas been member of
a
Grade I post of that
amongst persons of not less than one year or

of Additional Secretary for a period

post
not less than five years.
service for a period of office for a
Tribunal shall hold
or member of the of
14.12.4 Term Office
(s.51). The chairperson he attains the age
he enters upon his office or until
from the date on which
or
term of 5 years as the Chairperson
earlier. However, before appointing any person does not
is that the person
65 years, whichever Government shall satisfy itself as
member of the Tribunal,
the Central his functions
to affect prejudicially
interest as is likely
have such financial or other
any
or member. Officer
such chairperson
of Service of Presiding
Conditions
and service
Allowances and other Terms conditions of
14.12.5 Salary, other terms and
and the member of
and allowances payable to, or a
(s.52). The salary retirement benefits of the chairperson
and other
including pension, gratuity
Tribunal shall be such as may
be prescribed.
the
The Information Technology Act, 2000 531

etc. (s.52A). The Chairperson of the Tribunal

14.12.6 Powers of superintendence, direction,
and directions in the conduct of the affairs of
shall have powers of general superintendence
the Tribunal and he shall, in addition to presiding over the meetings of the Tribunal, exercise
and discharge such powers and functions of the Tribunal as may be prescribed

14.12.7 Distribution of business among Benches (s.52 B). Where Benches are constituted,
the Chairperson of the Tribunal may, by order, distribute the business of that Tribunal amongst
the Benches and also the matters to be dealt with by
each Bench..

14.12.8 Power of Chairperson to transfer cases (s.52C). On the apPplication of any of the
parties and after notice to the parties, and after hearing such of them as he may deern proper
to be heard, or suo motu without such notice, the Chairperson may transfer any case pending
before one Bench, for disposal to any other Bench.
14.12.9 Decision by majority (s.52D). If the members of a Bench consisting of two members
differ in opinion on any point, they shall state the point or points on which they differ, and
make a reference to the chairperson who shall hear the point or points himself and such
point or points shall be dedided acording to the opinion of the majority of the members who
have heard the case, including those who first heard it.
14.12.10 Filling up of Vacancies (s.53). IE, for reason other than temporary absence, any
the case may be, then the
vacancy occurs in the office of the Chairperson or member, as
Central Govermment shall appoint another person to fill the vacancy
14.1211 Resignation and Removal (s.54). The Chairperson or member may by notice in writing
addressed to the Central Government, resign his office. The Central Government, may, by
order, remove the Chairman or member on the ground of proved misbehaviour or incapacity.
14.12.12 Orders Constituting Appellate Tribunal to be Final and not to invalidate its
as the
proceedings (s.55). No order of the Central Government appointing any person
or the members shall be called in Further no act or proceeding before
question.
Chairperson
the Tribunal shall be called in question on the ground merely of any defect in the constitution

of the Tribunal.
14.12.13 Staff of the Cyber Appellate Tribunal (s.56). The Central Government shall provide
the Tribunal with such officers and employees as that Government may think. These employees
and officers shall discharge their functions under general superintendence of the Chairperson.
Their salaries and allowances and other conditions of service shall he such as may be prescribed

by the Central Government.

an order made
14.12.14 Appeal to Cyber Appellate Tribunal (s.57). Any person aggrieved by
to the Tribunal. However, no
by controller or an adjudicating officer may prefer an appeal
with the consent of the
such appeal shall lie from an order made by an adjudicating officer
which a copy
parties. Every appeal shall be filed within a period of 45 days from the date on
of the order made by the controller or the adjudicating officer is received by the person
an opportunty
aggrieved. On receipt of an appeal, the Tribunal may, after giving the parties
of being heard, pass such orders thereon as it thinks fit, confirming, modifying or settin8

aside the order appealed against.

 Business Law
532
(s.58). The Tribunal shall not be bound by
14.12.15 Procedure and Powers of the Tribunal
Procedure. Instead it shall be guided by the
the procedure laid down by the Code of Civil
of this and of any rules. Also
to the other provisions
principles of natural justice and subject the place at which it
the Tribunal shall have powers to regulate its own procedure including
shall have its sittings.
as are vested in a Civil Court under the
Further, the Tribunal shall have the same powers
in respect of the following matters, namely:
Code of Civil Procedure, while trying a suit,
attendance of any person and examining him on oath;
(a) summoning and enforcing the
of documents or other electronic records;
(b) requiring the discovery and production
commissions for the examination of witnesses
(c) receiving evidence on affidavits; (d) issuing an application for default or deciding
or documents; (e) reviewing its decisions; (f) dismissing
it ex parte; (g) any other matter which may be prescribed.
be deemed to be a judicial proceeding.
Further, every proceeding before the Tribunal shall
The appellant may either appear in person
or
14.12.16 Right to Legal Representation (s.59).
its officers to present his or its case before
authorise one or more legal practitioners or any of
the Tribunal.
1963 shall, as for as may be,
14.12.17 Limitation (s.60). The provisions of the Limitation Act,
Tribunal.
apply to an appeal made to the entertain
(s.61). No court shall have jurisdiction to
14.12.18 Civil Court not to have Jurisdiction
matter which an adjudicating
officer or the Tribunal
suit or proceeding in respect of any
any court or other
Further no injunction shall be granted by any
is empowered to determine. of any power conferred
of action taken or to be taken in pursuance
authority in respect any

by or under this Act.

order of the
by any decision or
14.12.19 Appeal High Court (s.62). Any person aggrieved
to
from the date of communication
Tribunal may file an appeal to
the High Court within 60 days
or law
of fact out of such order.
arising
of the decision or order to him on any question
under this Act may,
Compounding of
Contraventions (s.63). Any contravention
14.12.20
proceedings, be compounded by the
either before orafter the institution of Adjudication not exceed
as the case may be.
However, such sum shall
controller or the adjudicating officer, the contravention so
amount of the penalty
which may be imposed for
the maximum

compourided.
commits the same or
shall not be available to person who
a
The benefit of compounding on which the
contravention

period of 3 years from the date

similar contravention within a
was previously compounded.
or compensation
(s.64). A penalty imposed
14.12.21 Recovery of Penalty Compensation arrear of land r e v e n u e . Also the licence (or
as an
awarded, if it is not paid, shall be recovered till the penalty is paid.
the Electronic Signature Certificate) shall be suspended

PARA 14.13 OFFENCES

committed under the Act.
Sections 65 to 78 make provisions as regards offences
The Information Technology Act, 2000 533

14.13.1 Tampering with Computer Source Document (s.65). Whoever knowinglv or

intentionally conceals, destroys or alters or intentionally or knowingly causes another to
conceal, destroy or alter any computer source code used for a computer, (or computer
programme, or computer system or computer network), when the computer source code is
required to be kept or maintained by law for the time being in force, shall be punishable with
imprisonment up to 3 years, or with fine which may extend up to R 2 lakh, or with both.

The expression "computer source code" means the listing of programmes, computer
commands, design and layout and programme analysis of computer resource in any form.
14.13.2 Computer related Offences (s.66). If any person, dishonestly or fraudulently, does
any act referred to in s.43, he shall be punished with imprisonment up to 3 years, or with
fine which may extend to 5 lakh, or with both.

14.13.3 Punishment for sending offensive messages through communication service etc.
section 66A provides that a person shall be punishable with imprisonment for a term which
may extend to three years and with fine, if he sends, by means of a computer resource or a
communication device - (a) any information that is grossly offensive or has menacing character

or (b) any information which he knows to be false, but for the purpose of causing annoyance,
inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred or ill
will., persistently be making use of such computer resource or a communication device, or ()
any electronic mail or electroníc mail message for the purpose of causing annoyance or
inconvenience or to deceive or to mislead the addressee or recipient about the origin of such
messages.
14.13.4 Punishment for dishonestly receiving stolen computer resource or communication
device. Section 66B provides dishonestly receives or retains any stolen
that whoever computer
resource or communication device knowing or having reason to believe the same to be stolen
computer resource or communication device, shall be punished with imprisonment of either
description for a term which may extend to three years or with fine which may extend to
T one lakh or with both.

14.13.5 Punishment for identity theft. Section 66C provides that whoever, fraudulently or
dishonestly make use of the electronic signature, password or any other unique identification
feature of any other person, shall be punished with imprisonment of either description for a
term which may extend to three years and shall also be liable to fine which may extend to
one lakh.
14.13.6 Punishment for cheating by personation by using Computer resource. Section 661D
provides that whoever, by means of any commnunication device or comnputer esource cheats
by personation, shall be punished with imprinnent of either description tor a ternm which
may extend to three years and shall also be liable to fine which may extend to one lakh.

14.13.7 Punishment for violation of privacy. Section 664 provides that whoever, intentionally
orknowingly captures, publishes or transmits the image of a private area of any person
without his or her consent, under circumstances violatiuny thwe privaey of that person, shall be
Punished with imprisonment which may extend to three yean or with line not exceeding
72 Lakh, or with both.
14.13.8 Punishment for Cyber Terrorism. Section 66l roviles that a person commits the
otfence ot cyber terrorism if he, with intent to, threaten the unity, integrity, security or
534

SOvereignty of India or to
strike terror in the
Business law
denying access to any people or any sction of the
access a person authorised to access compuler
compuler resource without a
resourCe, or (i)
people by- (i)
contaminant. authorization; or (in) introducing attempting to
any cormputer
And by means of such conduct he (i)
or is
or
damage to or destruction of propertycauses likely to cause death
disrupts supplies services injuries persons
or
or (ii) to
of the
community or
adversely affect the critical information
or
essential to the ife
The offence of terrorism is structure specified under s.70.
also committed a
a
computer resource without authorisation, by person if he knowingly or
(i) information, data or and by means of such conduct intentionally accesses
state or
computer database that is restricted for reasons of theobtains access to
foreign relations or (ii) any restricted information, data or security of the
reasons to believe that
such information, data or computer database, with
to cause or
likely to cause
computer database so obtained
may be used
injury to the interests of the sovereignty and
security of the state, friendly relations with integrity of India, the
or in relation to foreign states, public order decency or
of any
contempt of court, defamation or incitement to an offence, or to the morality,
foreign nation, group of individuals or otherwise. advantage
Such a person
committing or conspiring to commit cyber terrorism shall be punishable with
imprisonment which may extend to imprisonment for life.
14.13.9 Publishing of Information which is Obscene in Electronic Form
(s.67). Whoever
publishes or transmits or causes to be published in the electronic form, any material which is
lascivious or appeals to the prurient interest or if its effect is such as to tend to
deprave and
corrupt persons who are likely, to read, see or hear the matter, shall be punished on first
conviction with imprisonment of either description for a term which may extend to 3
years
or with fine which may extend to R 5 lakh. In the event of a second or subsequent conviction
the imprisonment may extend to 5 years and the fine may extend to 10 lakh.

14.13.10 Punishment for publishing or transmitting of material containing sexually explicit

act, etc. in electronic fom. Section 67A provides that whoever publishes or transmits in the
electronic form any material which contains sexually explicit act shall be punished on first
conviction with imprisonment for a term which may extend to five years and with fine
be shall be
which may extend to 7 10 lakh. In the, event of second or subsequent conviction
to seven years and also with fine which
punished with imprisonment which may extend
may extend to { 10 lakhs.
children in
14.13.11 Punishment for publishing or transmitting of material depicting
for the
Section 67B provides for punishment
sexually explicit act, etc. in electronic form. material in any electronic
torm
of offences: (i) publishing or transmitting
following types creates text-or digital
act or conduct; (i)
which depicts children engaged in sexually explicit distributes
exchanges, or
downloads, advertiser, promotes,
images, collects, seeks, browses, indecent or sexually explicit
children in obscene or
material in any electronic form depicting with one or more
relationship
induces children to online
manner; (111) Cultivates, entices or
offend a reasonable
adult on
in a m a n n e r that may
children for and on sexually explicit act or records in any
electronic

facilitates abusing children

online; (v)
the computer resource; (iv) act with
cnidre
that of others pertaining to sexually explicit
form own abuse or
 2000
535
The Information Technology Act,

on first
conviction with imprisonment upto five years and
Such a person shall be punished conviction the imprisonment
event of second or subsequent
with finc upto 10 lakh. In the
1S upto seven years and fine upto
7 10 lakh.
67A and 67B does not extend to any book, pamphlet,
However, the provisions of section 67,
or figure is in the interest of science, literature,
paper, writing, drawing, painting representation
concern; or which is kept or used for bonafide
or other objects of general
art or learning
heritage or religious purposes.
information by intermediaries. Section 67C provides
14.13.12 Presentation and retention of
that shall and retain such information as may be specified for such
(i) intermediary preserve
duration and in such manner and format as the Central Government may prescribe (ii) Any
knowingly does not do so shall be punished with
intermediary who intentionally or

imprisonment upto three years and also to fine.

14.13.13 Power of the Controller to give Directions (s.68).
The controller may, by order,
to take such measures or
direct a Certifying Authority or any employee of such authority
the order if those are necessary to ensure
cease carrying on such activities as specified in made there under. Any
compliance with the provisions of the Act, rules or any regulations order shall be
who intentionally or knowingly fails to comply with any
such guilty of
person
an offence and shall be liable on conviction to imprisonment for a term not exceeding 2 years

or to a fine not exceeding? 1 lakh or both.

or monitoring or decryption of
any
14.13.14 Power to issue directions for interception
69 follows: (i) where the
information through any computer resource: Section provides as

officers specially authorised by them

Central Government or a State Government or any of its
or expedient so to do, in the
interest of the sovereignty or
may, if satisfied that it is necessary
of the State, friendly relations with foreigm states
integrity of India; defence of India, Security offence
to the commission of any cognizable
or public order or for preventing incitement
offence, it may direct any agency of the appropriate
relating to above or for investigation of any information generated, transmitted, received
Government to intercept, monitor or decrypt any
or any person
resource. (ii) The subscriber or intermediary
or stored in any computer
If he
shall extend all facilities and technical assistance.
in-charge of the computer resource seven years and shall also be
fails to do so, then he shall be punished with imprisonment upto
liable to fine.
access of any information through
14.13.15 Power to issue directions for blocking for public
as follows: (i) where
the Central Government
any computer resource: Section 69A provides
satisfied that it is necessary or expedient so to do, in
the interest of sovereignty and integrity
is relations with foreign states or public
of India, defence of India, Security of the State, friendly
commission of any cognizable offence relating
to
order or for preventing incitement the Government or intermediary to block for access
to
the
above, then it may direct any agency of received, stored or hosted
in any
the public any information generated, transmitted,
by who fails to comply the above
directions shall be
computer resource. (ii) The intermediary also be liable to fine.
years and shall
punished with an imprisonment upto
seven

data or information through any

Power to authorize to monitor and collect traffic
14.13.16 69B provides as follows: (i)
The Central
resource for cyber security: Section
omputer
 536 Business Law

GOvernment may, to enhance cyber security and for identification, analysis and prevention
of intrusion or spread of computer containment in the country, authoriz7e any agency of the

Government to monitor and collect traffic data or

information generated, transmitted, received
stored in any (ii) The intermediary any person in-charge of the
or
or computer resource.
assistance and extend all facilities to the
above computer shall
resource provide technical
authorised agency to enable online access or to secure and provide online access to the
generating, transmitting,
resource
receiving or storing such traffic data or
computer or knowingly contravenes the above
information. (ii) Any intermediary who intentionally
three years and shall also be liable to
provisions shall be punished with imprisonment upto
fine.
that the appropriate Government may declare
System: Section 70 provides
14.13.17 Protected
the facility of Critical Information
affects
which directly or indirectly
any computer resource Government may authorise
Infrastructure, to be a protected system. Also the appropriate
who attempts
secures access or

persons to access protected systems. Further any person

the
of this section shall
in contravention of the provisions
to s e c u r e access to a protected system
and shall also be liable to fine.
be punished with imprisonment upto ten years
without
secures access or attempts
to secure access to a protected system
Any person who of either
the government shall be punished with imprisonment
authority from appropriate liable to fine.
term which may extend to 10 years
and shall also be
description for a

Section 70A provides

that the Central Government may
14.13.18 National Nodel Agency: model agency in respect
of
as the national
of the Government
designate any organisation Protection. The national
nodel agency shall be responsible
Infrastructure critical
Critical Information
development relating
to protection of
research and
for all measures including
information infrastructure.
incident
serve as national agency for
Team to
14.13.19 Indian Computer Emergency Response appoint an agency
Government shall
as follows: (i) The Central The
response:
Section 70OB provides
Indian Computer Emergency Response Team. (i)
to be called the functions in the
of the Government national agency for performing the following
the information on cyber
above Team shall s e r v e as and dissemination of
collection analysis incide its
area cyber security: (a)
of
secur.ty incidents; (c) coordination of cyber

forecast and alerts of cyber security incidents; (e) issue

in cidents; (b) for handling cyber
(d) emergency
measures
to information
security
activities;
response and white papers relating
notes such other
guidelines,
advisories, vulnerability
and reporting of cyber incidents; () intormation
prevention, response call for
the Team may
practices, procedure, as may be prescribed. (3) and
information
to cyber security
relating centres, body corporate
data
intermediaries,
service providers, not complied
and give
directions to the information is not provided
and /or
directions are
or
upto one year
other person. In case, the with imprisonment
any concerned shall be
punishable
with, then the person both.
with fine upto
1 Lakh or with misrepresentation
to, or
makes any
(s.71). Whoever obtaining any
for Misrepresentation Authority for
14.13.20 Penalty controller o r the
certifying for a term
material fact from, the with imprisonment
suppresses any
Certificate, shall
be punished or with
both

or
Electronic Signature extend to 1 lakh,
licence which may
or with fine
extend to 2 years,
which may
 The Information Technology Act, 2000
537
14.13.21 Breach of Confidentiality and Privacy (s.72). Any person, (empowered under the
Act) who has secured access to any electronic record, book, register, correspondence,
information, document or other material, and he, without the consent of the person concerned.
discloses the same to any other person shall be punished with imprisonment for a team
which may extend to 2 years, or with fine which may extend to 1 lakh, or with
both,
14.13.22 Punishment for disclosure of information in breach of lawful
contract. Section
72Aprovides that any person including an intermediary who, while providing services under
the terms of lawful contract, has secured access to
any material containing personal information
about another person, with the intent to cause
wrongful loss or wrongful gain, discloses
without the consent of the person concerned, or in breach of a lawful
contract, such material
to any other
person, shall be punished with imprisonment upto three years, or with fine
upto 5 lakh, or with both.
14.13.23 Penalty for
Publishing Electronic Signature Certificate False in Certain Particulars.
(s.73). No person shall publish a Electronic Signature Certificate or otherwise make it available
to any other
person with the knowledge that (a) the Certifying Authority listed in the certificate
has not issued it; or (b) the subscriber listed in the certificate has not
certificate has been revoked or
accepted it, or (c) the
suspended unless such publicatiorn
is for purpose of verifying
a digital signature created prior to such suspensions or revocation.

14.13.24 Publication for Fraudulent Purpose (s.74).

Whoever knowingly creates, publishes
or otherwise makes available a Electronic Signature Certificate for any fraudulent or unlawful
purpose shall be punished with imprisonment for a team which may extend to 2 years, or
with fine which may extend to 1 lakh, orwith both.
14.13.25 Act to Apply for Offence or Contravention Committed outside India (s.75). The
provisions of this Act shall apply also to any offence or contravention committed outside
India by any person irrespective of his nationality. For this application, it is necessary that the
act or conduct constituting the offence or contravention involves a computer, computer system
or computer network located in India.
14.13.26 Confiscation (s.76). Any computer, computer system, floppies, compact disks, tape
drives or any other accessories related thereto, in respect of which provision of this Act,
rules, order or regulations made thereunder has been or is being contravened, shall be liable
to confiscation.
14.13.27 Compensation, Penalties and Confiscation not to Interfere with other Punishments
(s.77). No compensation awarded, penalty imposed or confiscation made under this Act
shall prevent the award of compensation imposition of any other punishment to which the
person affected thereby is liable under any other law for the time being in force.

14.13.28 Compounding of offences. Section 77A provides that a court of competent jurisdiction
for-life or
may compound offences, other than offences for which the punishment
imprisonment for more than three yeas has been provided.
of his
compound such offence where the accused is, by
reason
However, the court shall not
of a ditterent
previous conviction, liable to either, enhanced punishment or to a punishment
kind.
538 Busines Law

offence afftects the socio-economic

Aso shall not compound any offence where such
the court
a child below the age of 18 years or
conditions of the country or has been committed against
a woman.

be bailable. Section 77B provides that

14.13.29 Offences with three years imprisonment to
and above shall be cognizable and
the offence punishable with imprisonment of three years
shall be bailable.
the offence punishable with imprisonment of three years
Notwithstanding anything contained in the
14.13.30 Power to Investigate Offences (s.78).
below the rank of Inspector shall investigate
Code of Criminal Procedure, a police officer not
any offence under
this Act.
CASES
PARA 14.14 INTERMEDIARIES NOT LIABLE IN CERTAIN
that intermediaries shall not be liable in
There is only one section (i.e.; s.79) which provides
party information, data,
or
be liable for any third
certain cases. An intermediary shall not

communication link made available or hosted by him.

function is limited to providing
liability is available to him if: (a) his
This exemption from made available by third parties is
over which information
access to a communication system does not (i) initiate the
hosted; or (b) the intermediary
stored or information
transmitted or temporarily select or modify the
the transmission and (ii)
receiver of
transmission, (i) select the observes due diligence
while discharging
the transmission,; (c) the intermediary Central Government
contained in as the
Act and also observes such other guidelines
his duties under this
in this behalf.
may prescribe
or
if (i) he has conspired
available to the intermediary
is not
otherwise in the
commission
The exemption from liability or promise or
whether by threats notified by the
abetted or aided or
induced, or on being
actual knowledge, in or
upon receiving c o m m u n i c a t i o n link residing
of the unlawful act; (i) information, data
or
the
Government that any is being used to commit
appropriate controlled by the
intermediary
that r e s o u r c e
resource
a c c e s s to
that material on
connected to a computer disable
fails to r e m o v e or
unlawful act, the
intermediary
in any m a n n e r .
the evidence
without vitiating
MISCELLANEOUS

under.
PARA 14.15
-

summarised as
are
miscellaneous provisions place
enter any public
Some of the important
to
other officers
officer and suspected
the power of police who is reasonably
80 enumerates found therein offence under
this
Section warrant any person commit any
and assist without about to
and search or of being
committed or of committing
effect
of having it shall have
effect, i.e., time
Act. shall have overriding other law for the
declares that this Act contained in any
Section 81 inconsistent
therewith

notwithstanding
anything and
electronic cheques
to
Act shall apply
being in force.
provisions of this
that the
Section
81A provides
truncated cheques.