An Introduction to the Information Technology Act, 2000

Introduction:

 As the world is growing, the people have witnessed a significant growth of Information and Technology in today’s era. Information and communication are the two essential elements which has completely changed the lifestyle of the entire society. With the introduction of information and technology, the needs of the people have also increased. In the 19^th century, the needs of the people were food, house, and clothing which are very crucial for living a healthy and safe life. But now with the introduction of information and technology, mobile phones, computers, the internet, etc have become an important part of people’s lives. Nowadays people’s needs are not limited only to food, clothing and shelter but also include internet, mobile phones, computers etc. The people in today’s era cannot imagine their life without technology. Technology has made society dependent on itself. Now people are often prone to mobile phones and internet services.

With the invention of information and technology, many sectors such as the banking sector, transportation sector, retail industry etc have shifted their service to the internet. In the Banking sector, the major activities are done through computers and the internet whether it is transferring funds, checking A/C balance etc. Many industries have witnessed a drastic change in their workings after the invention of information and technology. Due to the rapid rise in the usage of information and technology, the government of many countries and the United Nations realized the importance of having formulated laws to govern the activities of information and technology.  In India, all the laws related to information and technology are governed through the Information Technology Act, 2000.  

 A resolution A/RES/51/162, was adopted by the General Assembly, UN on 30^th January 1997 regarding the model law on e-commerce. The main motive behind passing this resolution was to govern the activities of information and technology. This model law on e-commerce helped many countries to prepare a law that regulates the law of information in the form of technology. This model of law on e-commerce was adopted by United Nations Commission on International Trade Law (UNCITRAL), 20^th session 1966. The UNCITRAL is the main legal body of the United Nation system. The main motive of UNCITRAL is to make laws related to international trade. This is the body that is responsible for facilitating international trade between countries around the world.   

The United Nations resolution 2205 of 17 December 1966 created UNCITRAL for governing the international trade with the prime motive of bringing harmonization and unification of the law of international trade. The UNCITRAL also focused on all the interests of the general public and mainly the natives of the developing and the underdeveloped countries. This model of law applies to all kinds of information in the form of data messages used in the context of commercial trading or dealings.

Amendments to the I.T Act, 2005

First Schedule: Amendments to Indian Penal Code 

It has widened the scope of the term document to extend its ambit to electronic documents.

Second Schedule: Amendments to Indian Evidence Act

It included electronic documents in the ambit of evidence through the use of digital signatures in the documents.

Third Schedule: Amendments to the Bankers’ Books Evidence Act,1891

In this amendment, some changes were done in the definition of Banker’s- book. It includes printouts of data stored in digital modes such as floppy, disc, tape, or any other form of electromagnetic data storage device. Similar changes were brought in the certified copy to include printouts of data stored in digital modes such as floppy, disc, tape, or any other form of electromagnetic data storage device.

Fourth Schedule: Amendment to Reserve Bank of India Act

It includes regulation for fund transfer between banks or between the banks and other financial institutions through electronic mode and conditions subject to which banks and other financial institutions shall participate in such fund transfers.  

Why this act is important?     

The Information and technology act, 2000 is the fundamental law that sets certain restrictions for the people to act within certain limits to avoid infringement of any session stated under law as prohibited.  This act is important due to some certain reasons as listed below:

1. Facilitating International Trade: The main motive behind the implementation of the Information Technology act is to promote international trade between the countries. With the help of information and technology, trading has been much simpler as compared to the earlier times, where the exchange of foreign currency and communication with each other across the world was very difficult. But now the technology has made the task of the traders much easier as they can transfer funds in a couple of minutes and communicate with each other through mobile phones and other technology.  Hence facilitating international trade is the biggest advantage of implementing this act.
2. Alternate to Paper-Based Methods of Communication and Storage of Information: Another reason behind implementing this act is that it is the best alternative to the paper-based methods of communication and storage of information. Through technology, people can store a large amount of information in a small and compactible file which are easy to find and access.  Communication through paper-based methods such as letters have been replaced by emails which are much quicker and easier to send and receive. Hence, the technology has proved itself as the best alternative to the paper-based methods of communication and the storage of data.

Reliable Source for Handling Records        

The technology is considered as an effective and efficient method for reliable electronic records by the government. The government uses the technology for handling public records. In today’s time, the government has adopted a drastic change in their working. They have shifted to online recording of data from paper-based methods which has made the functionality of the government more effective and efficient. The technology has proved itself as a reliable source for handling records where the public officials and offices can store a lot of data in small files.

Therefore, the invention of information and technology has brought about a new evolution to the working of many government and private offices where people had to spent a lot of time while standing in queues.

Effective and efficient method for Reliable Electronic Records

The technology is considered as an effective and efficient method for reliable electronic records by the government. Nowadays the government uses technology to store a lot of data of the citizens. The data includes the personal information of the people, Annual income of the citizens etc.

Konkan Railway Company Ltd. V. Rani Construction Ltd. (AIR 2002 SC 778)

Law Point

Article 136 of the Constitution empowers the Supreme Court to grant special leave to appeal from any judgment, decree, sentence, or order in any cause or matter passed or made by any court or tribunal in the territory of India.

Background and Issues

In Ador Samia Private Limited Vs. Peekay Holdings Limited & Ors. [1999], the court has decided that the order of the Chief Justice or his designate in exercise of the power was an administrative order under Section 11 of the Arbitration Act and that such order was not open and responsive to suggestion by the jurisdiction of Supreme Court under Article 136.

In Konkan Railway Company Ltd. V. Rani construction company Ltd, the judges referred the case to the larger of judges for reconsideration. Two issues were found by the judges:

1. Whether such an order was a judicial order or an administrative order.
2. Does the Chief Justice or his nominee, acting under Section 11, have the authority to decide any contentious issues between the parties to the alleged arbitration agreement?

The Court Observed

The judges noted that the arbitration act was based upon the UNCITRAL model and a comparative study between section 11 of the act and Article 11 of the model law was done by the judges. They found out that the act designated chief justice of High Court cases of domestic arbitration and chief justice of India in the cases of international arbitration as an authority to appoint an arbitrator whereas in the model law the power was rested with the court. When the matter is placed before the chief justice under section 11 it is not appropriate for the chief justice to entertain any contentious between the parties rather his duty is to fill the loopholes left in the arbitration agreement

Hence, the bench dismissed the appeal.

Validating of the Act

 With the invention of Information and technology, it is easier for the parties to settle outside the court with the help of the arbitrator.  

Exceptions to the Applicability of act

Section 7 of the Information and Technology Act speaks about the retention of the electronic records.

Section 7(4) speaks about where the access to the records is required to be provided under this act and the person to whom the access is to be provided is sensorily disabled, the Central Public

Information Officer, as the case may be shall provide assistance for assessing information including assisting with inspection

Section 7(5) speaks about where access to information is to be provided in the printed form or in any electronic format the person or the applicant must be subject to section 7(6).

Schedule 1 of Information and Technology Act

Schedule 1 of the I.T Act is an amendment to IPC. This schedule has widened the scope of the term documents to include electronic forms of documents.

1. After section 29, the following section has been inserted, namely: – ” Article 29 Electronic records. – In clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 The words “electronic record” shall be assigned a meaning.
2. In section 167: The words “such public servant, charged with the preparation or translation of any document, frames or translates that document”, shall be substituted by the words “such public servant, charged with the preparation or translation of any document or electronic record, frames, prepares or translates that document or electronic record”.
3. In section 172: The words “produce a document in a Court of Justice”, shall be substituted by the words “produce a document or an electronic record in a court of Justice”.
4. In section 173: The words “to produce a document in a Court of Justice”, shall be substituted by the words “to produce a document or electronic record in Court of Justice.
5. In section 175: The word “document” at both the places where it occurs, shall be substituted by the words “document or electronic record”.
6. In section 192: The words “makes any false entry in any book or record, or makes any document containing a false statement”, ” shall be substituted by the words “makes any false entry in any book or record, or electronic record or makes any document or electronic recording containing a false statement “.
7. In section 204: The word “document” at both the places where it occurs, shall be substituted by the words “document or electronic record”.
8. In section 463: The words “Whoever makes any false documents or part of a document with intent to cause damage or injury”, shall be substituted by the words “Whoever makes any false documents or false electronic record or party of a document or electronic record, with intent to cause damage or injury”.
9. In section 464:
   1. The portion beginning with the words “A person is said to make a false document” and ending with the words “by reason of deception practiced upon him, he does not know the contents of the documents or the nature of the alteration”, the following shall be substituted, namely:
      (a) makes, sign, seals or executes a document or part of a document;
      (b) makes or transmits any electronic record or part of any electronic record;
      (c) affixes any digital signature on any electronic record;
      (d) makes any mark denoting the execution of a document or the authenticity of the digital signature, with the intention of causing it to be believed that such document or part of document, electronic record, or digital signature was made, signed, sealed, executed, transmitted or affixed by or by the authority or a person by whom or by whose authority he knows that it was not made, signed, sealed, executed or affixed; or
   2. Who, without lawful authority, dishonestly or fraudulently, by cancellation or otherwise, alters a document or an electronic record in any material part thereof, after it has been made, executed or affixed with digital signature either by himself or by any other person, whether such person be living or dead at the time of such alteration”?
   3. Who dishonestly or fraudulently causes any person, sign, seal, execute or alter a document or an electronic record or to affix his digital signature on any electronic record knowing that such person by reason of unsoundness of mind or intoxication cannot, or that by reason of deception practiced upon him, he does not know the contents of the document or electronic record or the nature of the alteration”?
      (b) after Explanation 2, the following Explanation shall be inserted at the end, namely:
      ‘Explanation 3.- For the purposes of this section, the expression “affixing digital signature’ shall have the meaning assigned to it in clause (d) of sub-section (1) of section 2 of the Information Technology Act, 2000.
10. In section 466: The words “Whoever forges a document”, shall be substituted by the words “Whoever forges a document or an electronic record”.
    (b) The following is the explanation which shall be inserted at the end, namely:
    Explanation- For the purposes of this section, “register” includes any list, data, or record of entries maintained in the electronic form as defined in clause (r) of sub-section (1) of section2 of the Information Technology Act, 2000.
11. In section 468: The words “document forged”, shall be substituted by the words “document or electronic record forged”.
12. In section 469: The words “intending that the document forged”, shall be substituted by the words “intending that the document or electronic record forge”.
13. In section 470: The word “document” in both the places where it occurs, shall be substituted by the words “document or electronic record”.
14. In section 471: The word “document” whenever it occurs, shall be substituted by the words “document or electronic record”.
15. In section 474: The portion beginning with the words “Whoever has in his possession any document” and ending with the words ” if the document is one of the descriptions mentioned in section 466 of this Code”, the words “Whoever has in his possession any document or electronic record, knowing the same to be forged and intending that the same shall fraudulently or dishonestly be used as a genuine, shall, if the document or electronic record is one of the descriptions mentioned in section 466 of this Code” shall be substituted.
16. In section 476: The words ” any document”, shall be substituted by the words “any document or electronic record”.
17. In section 477a: The words “book, paper, writing” at both the places where they occur, shall be substituted by the words “book, electronic record, paper, writing “.

Conclusion

Hence, information and technology has been an important part of everyone’s lives. Many industries have drastically shifted to the electronic forms of data stored where they can store a lot of data in small files. The need of the hour forced many people to adopt technology over the traditional methods and techniques.  With the invention of information in electronic forms, the major businesses have witnessed rapid growth as people are able to save a lot of time. Moreover, people can communicate better and without any type of delay which they might face in postal service.

Therefore, it very essential to have formulated laws to govern the activities of information and technology and stop or prohibits their misuse.