Session:2020-21

Name: Rahul Jha

Roll No. 17/ILB/034
Subject: Cyber Law
Topic : Digital signature

School: School Of Law, Justice

& Governance (SoLJ&G)
This Project is made Under the
Guidance of miss Kajal Gupta
INTRODUCTION
The introduction of signatures has provided a definite identity to the individuals and allowed the
corporate sector and other individuals to function in a manner faster, keeping pace with the ongoing
technology. The signatures have by far played a huge role in individual’s decision making and
enabling consent at a much larger value. In olden times, every individual or the authorised signatory
had to go through the document entirely and then provide his assent. This created enough hurdles
amongst the organisations to keep up with the pace of the signatory and revolve around his/her
timeline. Authorised Signatory may not be at a particular place and still allow his assent. Technology
has duly provided his boon.

In advancement of the growing industrial era, the United Nations in 1998 made an observation that
increasing transactions in cyberspace over the recent years made it very necessary to have a legal
framework dealing with e-signatures. It was the stringent laws for e-signature and the development
of cyber laws were seen as the need of the hour.

Electronic signature
Electronic Signature provides an electronic representation of the individual’s identity that provides
the proof of consent and assents to the facts of the given signature. In toto, it’s an approval from the
signatory that he assents to the written format of the same electronically. It is important to ensure
that it is coming from the authorised signatory and has made no modifications to the document.

The European Union Regulation 910/214 defines and regulates electronic signature as “in electronic
form which is attached to or logically associated with other data in electronic form and used by the
signatory to sign”

Concept of Digital Signature

A signature is a symbolic and essential representation of one’s identity. Signature of a person holds a
very significant place in the field of law as well as while carrying out transactions. When a person
signs a particular document, it means that such a person has read the whole document carefully, has
verified the facts and is aware of the contents of the document and therefore is giving his assent to
the best of his knowledge.

Under the contract law also, signature holds a vital position as it is considered as a sign of
acceptance of an offer. The Conventional form of signatures has evolved a lot due to technological
advancement. With the increased usage of online transactions and e-mails, the risk of the data being
hacked has also increased. Hence, the concept of online signatures has become relatively important.

Basic difference between digital signature and electronic signature- layman’s terms

Electronic Signature is more of an assent on the given document without asserting the validity of the
contents of the same. It could also refer to the image affixed in the document as simple as an Image
to asset the given content or to display that the given party has given their consent to the same. It
can be easily tampered or easily misconfigured as compared to the digital signature. Electronic
signatures cannot easily be verified with regards to the time and place, there can be certain
instances where someone else may affix the signature on the given documents and still can’t be
traced. In addition, Audit Logs are not easily applied to electronic signatures. [2]

Digital signatures on the other end are more safeguarded and cannot be easily tampered with. In
case there are any changes made to the document and are sent back to the original signee, the
digital signature shows as invalid signature. As compared to the electronic signature, the individual
has a separate passkey that is passed only from the signee to the original recipient. The signatures
provide the time and stamp which is very essential to prove in the court of law in case there is a
dispute between the parties. It discloses the identity of the individuals and provides a definite
identity which is very vague as compared to Electronic Signature.

UNCITRAL Model Law on electronic signatures 2001

The purpose of UNCITRAL Model Law on Electronic Signatures 2001 provides the following
statement which signifies the importance of electronic signature.

“The increased use of electronic authentication techniques as substitutes for handwritten signatures
and other traditional authentication procedures has suggested the need for a specific legal
framework to reduce uncertainty as to the legal effect that may result from the use of such modern
techniques (which may be referred to generally as “electronic signatures”). The risk that diverging
legislative approaches be taken in various countries with respect to electronic signatures calls for
uniform legislative provisions to establish the basic rules of what is inherently an international
phenomenon, where legal harmony as well as technical interoperability is a desirable objective.” [3]

Digital Signature and Electronic Signature as defined under the Law

Electronic Signature

Sec 2 (ta) of Information Technology Act 2000 had defines electronic signature as:

“Authentication of any electronic record by a subscriber by means of the electronic technique

specified in the second schedule and includes digital signature.”

The definition of electronic signature includes digital signature and other electronic techniques
which may be specified in the second schedule of the ACT, thus an electronic signature means
authentication of an electronic record by a subscriber by means of electronic techniques. The
adoption of ‘electronic signature’ has made the Act technological neutral as it recognizes both the
digital signature method based on cryptography technique and electronic signature using other
technologies.

Types of electronic signature

Unsecured Signature
Since Electronic Signature is more of an unsecured type of signature, there are affixations that are
marked in the end for reference. However, as stated earlier, they can be easily tampered and not
provide much of the focus on the authenticity of the Identity. Following are the types of Electronic
Signature:

1) Email Signature– Just merely typing one’s name or symbol in the end of an email or sending a
message on letterhead, they can easily be forged by anyone else.

2) Web Based Signature– In many organizations, the Company dons many hats with regards to
activities conducted in the Organizations, this may make the organization fall for Web-based
clickwrap contracts in which the acceptance is made merely by clicking a single button. Such
signatures bind the party even if they were conned fraudulently.
The advancement of growing online transactions has caused variety of cyber crime to take place
right from the deceptiveness to hidden identity. It is for this reason that Digital Signature is taken as
a more stringent form of signature and to protect the identity of the sender. There are more
advanced ways to curb the menace caused in Electronic Signatures as well.

Secured Signature
This includes the signatures which are digitally secured and also which have more legal weightage.

Digital Signature

 According to section 2(1)(p) of the Information Technology Act, 2000 digital signature means
the authentication of any electronic record by a person who has subscribed for the digital
signature in accordance to the procedure mentioned under section 3 of the same act.

 Section 5 of the Information Technology Act, 2000 gives legal recognition to digital
signatures.

Usage of Digital Signature

1) Personal Use- It is at the liberty of the individual to use the signature personally without creating
the hassle to personally be at the given place.

2) Business– Professions such as Architecture, Construction and Engineering Companies require to

sign the tenders, market procurements or even biddings, Digital signature can prove to be a great
way to provide the assent.

3) Return filing for GST– GST filing and E-filing causes the individuals to compulsory opt for Digital
Signatures.

4) Filing for Income Tax– Some corporations require the business to file the tax all over India, thus
saving the light of the day.

5) For ROC E-filing– Filing with registrar of Companies and filing for various documents has caused
enough leverage for individuals to opt for Digital Signature.

Difference between Electronic Signature and Digital Signature

S.No Electronic Signature Digital Signature

It has been defined under Section 2(1)(ta) of It has been defined under Section 2(1)(p) of the
the Information Technology Act, 2000. Information Technology Act, 2000.

It is technologically neutral, ie. no specific

It follows a technology-specific approach such as usage
2. technological process is to be followed to
of hash functions etc.
create an electronic signature.

It uses public key cryptography system to sign up for a

It can be created by using various available
particular message which requires a pair of keys ie. a
3. technologies like attaching a picture of your
private key for encryption and a public key for
signature.
decryption, computed by using a hash function.

4. It can be in the form of a name typed at the It involves the usage of Cryptographic system of
 end of an email, a digital version of a
constructing the signature with a two-way protection
handwritten signature in the form of an
system.
attachment, a code or even a fingerprint.

It is less authentic as compared to the digital It has more authenticity as compared to the electronic
5.
signature. signature.

6. It is verified through the signer’s identity. It has a certificate-based digital 10 verification.

7. It is used for verifying a document. It is used as a means for securing a document.

8. It has no expiration or validity period. It is valid up to a maximum of three years.

9. It is easily vulnerable to tampering. It is more secure and highly reliable.

Features of Digital Signature

The authenticity of the sender

The person who receives the electronic message or document is able to realise who is the sender of
the message. The digital signature makes it possible to verify the name of the person signing the
message digitally.

The integrity of the message

The receiver of the electronic message is able to determine whether he/she has received the original
document or whether the document has been altered before the receipt or not.

Non- Repudiation

The sender of the message cannot refute the contents of the electronic message and cannot deny
that he/she had never sent the message.

Authentication using Digital Signature

The authentication of the electronic record is done by creating a digital signature which is a
mathematical function of the message content. Such signatures are created and verified by
Cryptography, which is a branch of applied mathematics. It is used to secure the confidentiality and
authentication of the data by replacing it with a transformed version that can be reconverted to
reveal the original data only to someone who has the proper key.

 A key is a sequence of symbols that controls the operation of a cryptographic

transformation.

 It involves two processes which are as follows.

1. Encryption: The process of transforming the plain message into a cipher text.

2. Decryption: The reversal of Cipher text into the original message.

Asymmetric Encryption
Can only be decrypted using a publicly available key known as the ‘Public Key’ provided by the
sender. The procedure has been under Section 2(1)(f) of the Information Technology Act, 2000.
Under this system, there is a pair of keys, a private key known only to the sender and a public key
known only to the receivers.

The message is encrypted by the private key of the sender, on the contrary, decryption can be done
by anyone who is having the public key. It depicts the authenticity of the sender. It is also known as
the ‘principle of irreversibility’ ie. the public key of the sender is known to many users, but they do
not have access to the private key of the sender which bars them from forging the digital signature.

Symmetric Encryption
There is only a single key known to both the sender and the receiver. Under this system, the secret
key or the private key is known to the sender and the legitimate user. This secret key is used for both
encryption and decryption of the message.

The only drawback of this symmetric encryption is that as the number of pairs of users increases, it
becomes difficult to keep track of the secret keys used.

Benefits of Digital Signature

 Authenticity.

 Non-deviability.

 Message cannot be altered in between the transmission.

Process followed for the creation of digital signature

Digital signatures are becoming very popular in the whole world. Countries that approve the use of
digital signatures have a structure that governs the acquisition and use of the digital signature. Even
so, regardless of the country that you come from, the way of acquisition is standard. Digital
signatures are created and issued by qualified individuals. For anyone to get a valid digital certificate,
they must get it from a certifying authority (CA).

The Certifying Authority (CA) is a kind of Trust Service Provider, and it is a third-party organization
that is trusted and accepted in a country. It has the power of issuing the citizens with digital
signatures. These CAs have rules and regulations that they have to keep and be governed by.

Firstly a person needs to get a Digital Signature Certificate from the Certifying Authorities. After that,
the following process is followed:

1. The original message of the sender is demarcated in order to get the message digest, with
the help of the hash function.

2. Then the private key is used to encrypt the message digest.

3. The encrypted message digest becomes the digital signature by using the signature function.

4. The digital signature is then attached to the original data

5. Two things are transmitted to the recipient:

 The Original message

 The digital signature

Rule 4 of the Information Technology(Certifying Authorities) Rules, 2000, explains the procedure of
digital signature as:

 To sign an electronic record or any other item of information, the signer first applies the
hash function in the signer’s software. A hash function is a function which is used to map
data of arbitrary size onto data of a fixed size. The values returned by a hash function are
called hash values, hash codes, digests, or simply hashes

 The hash function computes a hash result of standard length, which is unique to the
electronic record.

 The signer’s software transforms the hash result into a Digital Signature using the signer’s
private key.

 The resulting Digital Signature is unique to both electronic record and private key which is
used to create it.

 The Digital Signature is attached to its electronic record and stored or transmitted with its
electronic record.

Verification of Digital Signature

The recipient receives the original message and the digital signature. After this, there are two steps
which need to be followed:

 A new message digest is recovered from the original message by applying the hash result.

 The signer’s public key is applied to the digital signature received by the recipient and
another message digest is recovered as the outcome of it.

 If both the message digests are identical, it means that the message is not altered.

Rule 5 of the Information Technology (Certifying Authorities) Rules, 2000, explains the method of
verification of digital signature as:

The verification of a Digital Signature shall be accomplished by computing a new hash result of the
original electronic record by means of a hash function which is used to create a Digital Signature and
by using the public key and the new hash result.

Problems With Digital Signature

 It functions online. Therefore, it has to be either purchased or downloaded

 It lacks trust and authenticity

Digital Signature Certificate (DSC)

Introduction

1. A method to prove the authenticity of an electronic document.

2. It can be presented electronically to prove the identity, to access information or sign certain
documents digitally.

3. The Central Government has appointed a Controller of Certifying Authorities who grants a
license to the Certifying Authorities to issue digital signature certificates to the subscriber.
Who needs a DSC?

1. A vendor and a bidder

2. A Chartered Accountant

3. Banks

4. Director of a company

5. A Company Secretary

6. Other Authorized Signatories

Elements of Digital Certificate

1. Owner’s public key.

2. Owners name.

3. The expiration date of Public Key.

4. Name of the issuer.

5. Serial Number of the certificate.

6. A digital signature of the user.

Types of Certificate
1. Only Sign– It could only be used for signing a document. It is widely used in signing PDF Files
for the purpose of filing Tax Returns for usage as an attachment for Ministry Of Corporate
Affairs or other government websites

2. Encrypt– It is used to encrypt a particular document. It is popularly used in tender portals to

help a company encrypt a document before uploading it.

3. Sign along with Encryption– It is used for both signing and encrypting a particular
document.

Legal Approach and Digital Signature

 The provisions of Information Technology Act, 2000 are based on the UNCITRAL’s Model
Law on E-Commerce.

 The Model Law is based on the minimalist neutral approach ie. with the changes in
technology the law will remain neutral, as technology is dynamic in nature and comes in the
public domain with a lot of advancement with the passage of time, and it will not be feasible
for the legislators to keep on changing the laws dealing with the technology.

 According to Article 7 of the UNCITRAL model, there ought to be a signature of a person

while contracting using the electronic means, for which any technology can be used. It has to
be ensured that the sender can be identified and he has given his consent to the message.

 The same ‘technology neutrality’ approach has also been ratified by the Amendment Act,
2008 of the Information technology Act, 2000, with the insertion of Section 3A.
Conclusion
With the advancement in technology, the usage of the digital signature in place of the conventional
signature has widely increased. The Information Technology Act, 2000 talks widely about the
concept of Digital Signature, the authorities who have been given the power of issuing the digital
signature certificate and the circumstances which require affixation of the digital signature.