INFORMATION TECHNOLOGY ACT, 2000

THERE ARE 94 SECTIONS – 4 SCHEDULES – 13 CHAPTERS

3rd and 4th Schedule are omitted.

HISTORY OF THE ACT

A bill was passes in the budget session of 200 and it was signed by the President K.R. Narayanan. On
9th May, 2000 the bill was finalized by a group of officials headed by Communication and IT Minister,
Pramod Mahajan. He played a key role.

Date of Enactment: 9 June, 2000

Date of Commencement: 17 October, 2000

Why was the IT Act introduced?

It was introduced to provide legal infrastructure for e – commerce and cyber-crime. To provide legal
recognition for transactions carried out by means of electronic communication referred as ‘Electronic
Commerce.’

IT Act is based on UNCITRAL Model law adopted by United Nation Commission of International Trade
Law.

IT Act facilitates electronic filing documents with government agencies. IT Act bought amendments
to IPC, Indian Evidence Act, Banker’s Book Evidence Act and RBI Act.

In 2008 IT Act was amended to include cyber terrorism, child pornography etc. IT Act recognized
Electronic Records, Digital Signature and Activities carried by electronic means.

SECTION 1

Short Title: Information Technology Act, 2000

Extent: Whole of India. Also applied to any offences or contravention committed outside India by any
person.

Commencement: 17th October 2000

Application: This Act is not applicable on documents or transactions specified in 1st Schedule.

SECTION 2: DEFINITIONS

Section 2(1)(a): Access – it means gaining entry into or instructing or communicating in a computer,
computer system or computer network. Through access you can perform 3 functions: 1 st Logical, 2nd
Arithmetical, and 3rd Memory.

Section 2(1)(b): Addressee: means a person who is intended by the originator (who send the
message) to receive the electronic record.
Section 2(1)(d): Affixing electronic record: with its grammatical variations and cognate expressions
means adoption of any methodology or procedure by a person for the purpose of authenticating
an electronic record by means of digital signature.

Section 2(1)(da): Appellate Tribunal: means the Appellate Tribunal referred to in sub-section (1) of
Section 48;

Section 2(1)(e): Appropriate Government:

(i) enumerated in List II of the Seventh Schedule to the Constitution;

(ii) relating to any State law enacted under List III of the Seventh Schedule to the
Constitution, the State Government and in any other case, the Central Government

Section 2(1)(f): Asymmetric Crypto System: it is a secure key pair, consists of Private key which
means creating a digital signature and then the Public Key verifies the digital signature.

Section 2(1)(x): Key Pair: in an asymmetric crypto system, which means a private key and its
mathematically related public key, which are so related that the public key can verify a digital
signature created by the private key.

Section 2(1)(zc): Private Key: means the key of a key pair used to create a digital signature.

Section 2(1)(zd): Public Key: it means the key of a key pair used to verify a digital signature and listed
in the Digital Signature Certificate (DSC).

Section 2(1)(ha): Communication Device: it means cell phones, personal digital assistance or
combination of both or any other device used to communicate, send or transmit any text, video,
audio or image.

Section 2(1)(i): Computer: it means any electronic, magnetic, optical or other high speed data
processing device or system whose functions are logical, arithmetic, or memory by manipulations of
electronic magnetic or optical impulses.

Computer includes anything connected or related to computer in a computer system like computer
network, all inputs, output, processing, storage, computer software or communication facilities.

Section 2(1)(j): Computer Network: means the inter-connection of one or more computers or
computer systems or communication device through—

(i) the use of satellite, microwave, terrestrial line, wire, wireless or other communication
media; and
(ii) terminals or a complex consisting of two or more inter - connected computers or
communication device whether or not the inter-connection is continuously maintained;

Section 2(1)(k): Computer Resource: it means computer, computer system, computer network, date,
computer database or software.

Section 2(1)(p): Digital Signature: means authentication of any electronic record by a subscriber by
means of any electronic record by a subscriber by means of an electronic method or procedure in
accordance with the provisions of Section 3.

Section 2(1)(t): Electronic Record: means data, record or data generated, image or sound stored,
received or sent in an electronic form or micro film, or computer-generated micro fiche.
Section 2 (1)(ta) Electronic Signature: it means authentication of any electronic record by a
subscriber by means of the electronic technique specified in the 2 nd schedule and includes digital
signature.

Section 2(1)(v): Information: it included date, message, text, images, sound, voice, coded, computer
programmes, software and data bases or micro film, or computer-generated micro fiche.

Section 2(1)(za): Originator: it means a person who sends, generates, stores, or transmits any
electronic message or causes any electronic message to be sent, generated, stores, or transmitted to
any other person but does not include an intermediary.

Section 2(1)(zg): Subscriber: it means a person in whose name the electronic signature certificate is
issued.

CHAPTER II

DIGITAL SIGNATURE AND ELCTRONIC SIGNATURE

SECTION 3

Section 3: Authentication of Electronic Records:

(1) Any subscriber may authenticate an electronic record by affixing his digital signature.
(2) Authentication is done by using Asymmetric crypto system or hash function. Using this
system we have transformed the initial electronic record to another electronic record.
(3) Any person by the use of a public key of the subscriber can verify the electronic record.
(4) The private key and the public key are unique to the subscriber and constitute a functioning
key pair.

Section 3A: Electronic Signature: (Added by the way of 2008 Amendment)

(1) The electronic authentication technique should be reliable and it should be specified in the
second schedule.
(2) How can the electronic authentication technique be considered reliable:
(a) Authenticator should have created the signature and not the other person
(b) the signature creation data or the authentication data were, at the time of signing, under
the control of the signatory
(c) 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
(e) it fulfils such other conditions which may be prescribed.
- the alterations made should be detectable then only it will be considered reliable.
(3) CG will prescribe us the procedure for the purpose of ascertaining whether electronic
signature affixed by the person is of his or not.
(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. Proviso states that the technique should be
reliable when added by the CG.
(5) Notification should be laid before the parliament.

CHAPTER III
ELECTRONIC GOVERNANCE
 SECTION 4

Section 4: Legal Recognition of Electronic records:

A law will get legal recognition of electronic records if law provides any information or other matter
which should be in the form of writing or typewritten or printed form then the law will be considered
that it has fulfilled the requirements when the information provided in electronic form or accessible
for subsequent use.

Sudarshan Cargo (P) Ltd. v. Techvac Engg. (P) Ltd., (2014) 1 ICC 906 (Kant): originator” to the
“addressee” by e-mail, without any intermediary, it amounts to electronic communication by e-mail
which is an alternative to the paper-based method of communication. This mode of transaction is
legally recognized under Section 4 of the Information Technology Act, 2000.

SECTION 5

Section 5: Legal recognition of electronic signatures: if a law states that an information or a matter
will be considered authenticated if there is a signature of the person. If we affix electronic signature
as per the prescribed requirements of the CG then it will be considered as the requirement is fulfilled
and will have a legal recognition.

SECTION 6

Section 6: Use of electronic records and electronic signatures in the government and its agencies:

(a) When a law provides any filing of any form, application, or any document to any office,
authority, body or agency owned or controlled by the CG.
(b) Issue or grant of any license, permit, grant, or approval in a particular manner
(c) Receipt of payment of money in a particular manner.

It will be considered as fulfilled if effected by the means of electronic form prescribed by the CG then
it will be deemed that it has satisfied the procedure.

The appropriate government prescribed any format the manner and format in which such electronic
records shall be filed, created or issued; the manner or method of payment of any fee or charges for
filing, creation or issue any electronic record under clause (a). if it is followed according to the
requirement then it will be considered that the requirement is fulfilled.

SECTION 6A

Section 6A: Delivery of services by service provider: (added by the way of amendment in 2008)

If the appropriate government wishes to efficiently deliver any service to the public via electronic
means, then it can authorize any service provider to so via a notification in the official gazette. The
service provider can be an individual, private agency, private company, partnership firm, sole
proprietor firm or any such other body or agency.

To collect, retain and appropriate such service charges, as may be prescribed by the appropriate
Government for the purpose of providing such services, from the person availing such service.

They can authorize the service provider collect the service charges. It can be done even if the original
law does not stipulate any service charges for the delivery of service. The government must specify
the scale of service charges for different services.

SECTION 7
Section 7: Retention of electric records:

- If a law provides that any doc/record/information should be retained for a specified

period, then, this will be deemed to have been done if following criteria are met:
1. the info was retained in electronic form
2. the electronic record remains accessible for subsequent reference
3. the electronic record is retained in its original format (or in any format where it
can be proven that the info originally sent/generated/received is accurately
represented)
4. the ER should contain details which will facilitate the identification of the origin,
destination, date and time of despatch or receipt of such electronic record

- All of this does not apply to any specific laws made for retention of data in electronic form

Section 7A: Audit of documents, etc., maintained in electronic form:

- If any law provides for audit of docs/records/info, then that provision will extend to
audit of electronic docs/records/info

Section 8: Publication of rule, regulation, etc., in Electronic Gazette:

- If a law provides that any law (including delegated legislation) should be published in
Official Gazette, it can also be satisfied if it is published in Electronic Gazette.
- The official date of publication of that law will be based on wherever it was
published first

Section 9: Sections 6, 7 and 8 not to confer right to insist document should be accepted in
electronic form:

- The aforementioned sections do not confer a right upon anyone to insist that any
government department/agency (including bodies funded and controlled by the
govt) should accept, issue, create, retain and preserve any document in the form of
electronic records or effect any monetary transaction in the electronic form

Section 10. Power to make rules by Central Government in respect of electronic signature

- Sec 10 says that the Central Govt can make rules prescribing the following things:
1. Types of electronic signatures
2. Manner/format of affixing electronic signatures
3. Manner/procedure of identifying the person who affixed the electronic signature
o Processes/Procedures to ensure adequate integrity/security/confidentiality of
electronic records/payments
4. Any other matter which is necessary to give effect to electronic signatures

Section 10A of IT Act: A contract formed through electronic means will not be declared invalid
simply because it was formed through electronic means.

• Sudarshan Cargo Pvt Ltd v Techvac Engineering Pvt Ltd, 2013 SCC OnLine Kar 5063 (Karnataka
HC): An electronic communication (such as email) is an alternative to paper-based communication
and is legally valid, so long as email was sent directly by originator to addressee.

• Trimex International FZE Ltd Dubai v Vedanta Aluminium (2010) 3 SCC 1: Trimex International FZE
Limited, the petitioner applied to the Supreme Court of India under Section 11(6) of the Indian
Arbitration and Conciliation Act, 1996 for the constitution of an arbitral tribunal. Vedanta Aluminium
Ltd., the respondent objected to the application, arguing that there was no contract between the
parties and therefore there was no agreement between the parties to refer disputes to arbitration.
The Supreme Court held that the contract was concluded through exchange of emails.

Section 11: Attribution of electronic records: the law says that the e record shall be attributed to the
originator if it was sent by the originator themselves or an authorized person on the originators
behalf or an information system programmed by originator/person authorised by originator to
automatically send the record.

Sec 12. Acknowledgement of Receipt (of electronic record):

1. If no stipulation was made by originator receiving acknowledgement, then the following will
be considered acknowledgement:
- any communication by addressee (automated or otherwise) or
- any conduct of the addressee that sufficiently indicates receipt of the e-record
2. If the originator said that his despatch will only be binding if the addressee gives
acknowledgement of receipt, then:
- the despatch will be deemed to have never been made if addressee does not give
acknowledgement
3. If originator has asked for acknowledgement of receipt but did not make it mandatory to
bind his despatch, then, after expiry of stipulated/reasonable time period:
- the originator will give notice to addressee and provide him some reasonable time to
respond, and,
- if addressee still does not acknowledge, then the originator can give notice to treat
the e-record as though it was never sent.

- Hashing is known as message digest.