Unit I

Cyber Law & Power of Arrest without Warrant under the IT

ACTs, 2000

Q.) What is Cyber Law? What are needs of cyber law?

 Cyber Law:-
 Law means rules and regulation passed by the parliament or the
judgment given by the courts are also known as law. The violation of
law amounts the punishment in the form of fine, compensation or
imprisonment (jail).
 Cyber law Cyber space refers to computer, internet, website, data,
emails, networks, software, data storage devices & electronics devices
such as cell phones, ATM machine etc.
 Thus, Cyber law is a branch of law that is governing issues related to
Cyber space such as
1. Cyber Crime .
2. Electronic- Commerce .
3. Intellectual Property Rights (IPR).
4. Applied to Cyber Space.
5. Data Protection & Privacy etc.
 In India we have Information Technology ACT 2000 which has been
amended in 2008 to deals with cyber space & cyber crime.

 Need of Cyber Law :

 There is a question whether computer is boon or bane. Considering the
goodness and badness of computer, internet etc.
 We have come across that no doubt computer & internet and
computer devices are good for development of the society but at the
same time we find that there are crimes also increasing in the cyber
space and sometimes there may be a threat to the country, society &
even to the humanity.
 The cases like spread of pornographic material, criminal threads deliver
by emails, e-websites that defame someone or spread racial
(Communal hatred).
 In the above cases it is argued that the conventional law for such crimes
is not sufficient & there is a big challenge to deal with these complex
 issues.
 For Example:
A moveable property is defined as a property of every description except in-
moveable property. The same law defines in-moveable property as land benefits
arising out of land &thinks attach to the earth. In the light of this definition
computer is a moveable property.
A legal challenges emerges because of mobility of data such as computer,
software are very expensive & in the market pirated software or easily available &
from pirated software people or making lot of money.
Hence, because of such complexing the conventional laws unfit to handle the
issues relating to cyber space & a need of new law was necessitated.

 Offence (section 80):-

Cognizable Offence :-
 The offence in which arrest without warrant is provided are called
cognizable offence.
 In case of cognizable offence the polices has the power to arrest the
person without warrant (order of arrest from the court/court order )
 Example : cognizable offences are those offence which are serious in
nature such as murder, rape, dowry, kidnapping, theft etc.
 Characteristics :
1. FIR is First Information Report is registered with the police.
2. Police can start investigation without taking the permission from the
 court.
3. The state government is the prosecutor the responsibilities of the
complaining or of victim is only to participate & providing assistance
to the public prosecutor.
4. The burden to prove the allegation lies with the public prosecutor.

 Section 154 Cr. P.C. provides that under cognizable offence the police
has to obtain the FIR from the deceased or from eased relatives or
represented without the permission of magistrate & the same has to be
entered in the general diary of the police station.
 After completing the investigation the police is required to file the
change sheet before the criminal court & afterword further procedure
like framing the issues, evidence, defense evidence, final argument &
judgment.
 Non- cognizable Offence:-
 Non-cognizable Offence means a case in which a police officer has no
authority to arrest without a warrant.
 Non-cognizable Offence is not serious in nature.
 For example: Assault, cheating, forgery, defamation.
 Characteristics :
1. FIR is Filed in the court.
2. Investigation of the case cannot be started when the court gives an
order to start the investigation.
3. The investigation can only be started when the court gives an order
to start the investigation.
4. It is the complaint who seeks to prosecute the accused 1.
5. The burden of proving of the offence lies upon the complaints.
6. No FIR can be registered the complaints can file a criminal complaint
in the court of magistrate.

 Section 155 of Cr.P.C. says that when an Information is given to an

officer in charge of a police station the police shall enter the substance
of the information in a book refer the same to the magistrate & as no
police officer shall investigate such cases without order of the
magistrate.

IT Title of Punishment Cognizable/ Bail able/

sectio Offence Non-Cognizable Non-Bail able
n
65 Tampering Imprisonment cognizable Non- Bail able
with up to 3 yrs &
computer fine upto
source Rs.2lacs
document.
66 Hacking with Imprisonment cognizable Non-Bail able
computer up to 3 yrs &
system fine upto
Rs.2lacs
67 Publishing or 1.Imprisonme cognizable Non-Bail able
transmitting nt up to 3 yrs
information & fine upto
which is Rs.2lacs
offence in 2.Subsequent
electronic conviction-
form Imprisonment
up to 10 yrs &
fine up to
Rs.2 lakhs

68(2) Failure of Imprisonment cognizable Non-bail able

compliance up to 3 yrs &
by certifying fine upto
authority Rs.2lacs (or
both
together)
69(3) Failure by Imprisonment cognizable Non-Bail able
any person up to 7 yrs.
to assist any
govt.agencies
which is
intersecting
 any
Information
transmitting
through any
computer
resource to
decrypt the
information

70 Access to Imprisonment cognizable Non-bail able

attempt by which many
any extend to 10
unauthorized yrs & fine
person a
protected
computer
system as
notify govt.
in the official
gazette.
71 Misrepresent Imprisonment Non-cognizable Bail able
ation or up to 2 yrs &
separation of fine upto
material fact Rs.2lacs
from the
controller or
certifying
authority for
obtaining any
license or
digital
signature
72 Breach of Imprisonment Non-cognizable Bail able
confidentialit up to 2 yrs &
y & privacy fine upto
Rs.2lacs
73 Publishing Imprisonment Non-cognizable Bail able
 digital up to 2 yrs &
signature & fine upto Rs.1
fall certifying lacs
74 Publication Imprisonment Non-cognizable Bail able
of digital up to 2 yrs &
signature fine upto Rs.1
certificate for lacs
fraudulent
purpose

 Section 80 of I.T.Act 2000 : -

 A Weapon or a force ?
 Section 80 I.T Act state that not withstanding anything contain
in Cr.P.C. any police officer not below the rank of Deputy
Supper Intendment of police or any other officer of the central
government or state government authorized by the central
government many enter any public place & search & arrest
without warrant any person found their in who is reasonably
suspected of having committed or of the committed or of being
about to commit any offence under this Act.
 Public place include any public convergence any hotel or any
shop or any other place intended for use.
1) Where any person is arrest sub section 1
2) Other officer such officer shall without any delay arrest
before a magistrate under the
jurisdictions of police station.
3) The provisions of civil provision court C.P.C shall subject to
prevision the section apply so for as may be in relation to
any entry search on arrest made under this section.
  Loop Holes :-
 At first glance of the sec 80 looks like very simple but on the
closure examination on the point of public place create a lot of
confusion which may be leads to a absurd result.
 For example :-
Mr. A. Is alleged to have a hack the defense system installed in the
computer network in the defense minister at a Delhi under sec 66 of IT
Act from a cyber cafe in Mumbai. He can be arrested without warrant
under sec 80 only if he is found in the cyber cafe itself or in some other
public place. But if Mr. A goes home and stays there after committing the
cyber crime in the cyber cafe then he cannot be arrested without a
warrant.
 It has been also argued that section 80 has been legislated
without any consideration for the nature of internet.
 Cyber cafe is run by the business man for a profit and not to be
defective and police.
 It is impossible for cyber cafe management to monitor every
customer needs privacy so it is impossible for the management
to known whether user is hacking a computer or not. It is their
for the necessity that the hacker are culprit or the accused
should be the arrested without warrant from any place
whether it is public or private.

 Suggestion to Remove Anomalies:-

 The following suggestion may be help to removing the anomalies from
sec 80 :
1) The power of arrest without warrant only from public place should
be scabbed(finish).
2) The complaint procedure applicator to not-cognizable cases put the
burdain of prosecution upon the complained since cyber crime easily
disregarded the borders and distances therefore it is difficult to
investigate. Hence to put the burdain on the victim to undergo the
complaint procedure could be unreasonable.
3) The Complainant could be also suffer if the real culprit is punished
 after a long gap(speedy trial)
4) It is insulting to the complainant to collected the evidence against
the accused this will discourage the victims
 Therefore the following suggestions can be made for restricting sec 80:-
1) The word Public should be deleted from sec1.
2) The explanation should be removed.
3) The words any offence under this act in sub section 1 should be
substituted by words
“Any Cognizable offence under this act.
 Safeguard provided by the legislature in sec 80:-
1. The power of arrest without warrant are given to only high
ranking Police officer to avoid the corruption in arrest.
2. The basic of arrest should be reasonable suspicion entertain
by the police officer against the accused.
3. For non-cognizable offence which may not be come under
the IT Act should not be arrested without the permission of
the court.
4. Since, IT Act is a new Act & in developing process, therefore
some more time should be given to make sec 80 more &
more rigid & compact.
 CHAPTER 2
Concept of cyber crime and objectives of cyber crime
as well client features of cyber crime IT Act

Q.) What is cyber crime ?

 Cyber crime is any criminal activity that involves a computer, network
device and a network. Cyber crime can be categorized the following three
ways :-
1)Crime in which the computer device is the target such as using a computer
to attack the other computer such as hacking.
2)Crimes in which a computer is used as a weapon using a computer to
commit real world crime such as credit card frauds Cyber terrorism.
3)Crimes in which the computer is used as an accessory to a crime for
example using a computer to store illegally obtain data.
 In simple words we can say that cyber crime is an unlawful act where
computer is used as a tool or as a target or both.
 Cyber crime can also involve criminal activities such as theft fraud,
defamation, forgery, mischief as of many under IPC.
 Hence the abuse of computer may be seen as a threat to the safety and
security of new age crime which are addressed by the IT Act 2000.
 Objectives of Information Technology Act 2000
 The Information Technology Act 2000 in its preamble provides the
following objectives.
 Two provide legal sanction of recognition to electronic commerce that
deals with various modes of communication and the storage of
information.
 To Facilitate electronic filling of documents with the Government
agencies.
 To amend (change) the Indian penal court the Indian Evidence Act and
banker’s book evidence Act and Preserve Bank of India Act.
 Salient feature of Information Technology Act 2000
 There are the following Salient features.
1) The Act gives legal recognition to electronic documents
2) Legal recognition on digital signature.
3) It prescribes offences, penalties and punishment.
4) It gives the outline for justice delivery system for Cyber crimes.
 5) It also prescribes the constitution of cyber regulations, advisory
committee, and rules, etc.
6) It also proposed to amend Evidence Act,IPC,Banker Book Evidence
Act, RBI Act.
7) The IT Act is spread in thirteen Chapters the first schedule covers
with documents or transaction and the second schedule deals
with electronic signature, authentication techniques and
procedure.
 Computer Related Crimes.
1) Hacking
2) Teenage Web Venders
3) Cyber fraud and Cyber cheating
4) Virus on the Internet.
5) Defamation, Harassment and Email abuse
6) Cyber Pornography.
7) Any other Cyber offences.

1)Hacking :-
Hacking can be made in the following ways.
It refers to breaking into computer System. Hacking also means where hackers
destroys, deletes, after any information to stored in the computer system or
diminishes its value or utility.
Hacker is a person who hacks the computer system the can be classified in the
following.
a) Code Hackers.
b) Phreakers
c) Cyber Punks
d) Crackers

a)Code hackers :-
They have knowledge of intricacies of computer system and dear operation.
b) Phreakers:-
Phreakers have deep knowledge of Internet and Telecommunication system.
c) Cyber Punks :-
Cyber Punks specialized in cryptography (It is a method of storing and
transmitting data it can also be used for users authentication)
 d)Crackers :-
Crackers the Backers into computer security system.
Out of all Cyber crimes hacking are now is the biggest threat to Internet and E-
commerce. The hacking is causing the huge loss which may be calculated in
billions and trillions if the hacking is unchecked it may cause a serious threat in
future to e-commerce and because of threat and its security system the e-
commerce is going to be costlier.
India is centre point of Pakistan; and Chinese hackers they sometimes insert al
link to pornographic website and also website of SEBI(Stock Exchange Board of
India ) had been Hacked there may be some reason for hacking such as
1) For fun as a hobby mostly teenagers
2) To damage competitors Business.
3) For fraud and misappropriation.
4) To test the Client system, Internet security and to win their confidence.
 Punishment for Hacking:-
The punishment for hacking is as under
a) An imprisonment upto 3 yrs.
b) Imprisonment with a fine which may extend to 2 Lacs of props.
c) Sometimes the punishment as mentioned above may be given together(a
and b).
 Case Law: -
 In feb 2001 two person Mr. Amit and Mr. Kapil blocked access to the
complained website on the grounds of non-payment of charges for
hiring web space. They not only blocked but displayed the message
site closed due to non-payment of bill.
 Blocking access was legal but display of message amounted to
hacking and wrongful loss under section 66 of IT Act and Section 23
of IPC
 The IT Act also covers the damages up to rupees 1 core on the
commission of computer related crimes without the permission of
owner.
2)Teenage Web Vandals:-
 Artech, Nemesustn, Team holocaust and Doo-Doo Knew are teenage
Web Vandals also called by security experts as ankle, biters packet
monkeys and script kiddies.
 It is noted that this teenage web vandals either deface web pages or
tag remarks on websites.
 This type of cyber crime has become fashionable and hot fabric of
teenagers nudism in India.
 E.g:-How to hack CD’s are easily and cheaply available only for 100-200-
300 which is affordable for any student such CD’s are helpful in cracking
a game to hacking a internet account and hijacking computer./
 The significant motivating factor of teenage criminality which is district
from other teenage crime such as drug abuse and violence.
 It can be checked by impacting information about the adverse
consequences of cyber crime to the IT Industry and the society the
parents can prevent children and check their acts.

3)Cyber Fraud :-
 Fraud :-
 A fraud is a deliberate deception to secure unfair and un lawful game or
to despised or to victim of a legal right section 17 of the Indian Contract
Act says fraud means and includes anty one of the following Acts
committed by a party through a contract with an intend to deceive
another party or his agent or to induced him to enter into the contract
1. The suggestion as a fact of that which is not true, by one who does not
believe it to be true.
2. By concealing (hide ) the material fact knowingly
3. A promise made without an intention to perform
4. Any other Act fitted to deceive
5. Any Act or a mission as the law declares to be fraudulent.
6. All Acts which amount to be cheating would be fraud but all fraud may all be
cheating.
 Section 25 of IPC also defines the fraud a person is said to do fraudulent
things if he does that thing with the intend to defraud the other person.
 Some of the examples of fraud in the cyber crime or as under like
misuse of credit cards by obtaining password by hacking, bogus
investment, deceptive investment, newsletter containing falls
 information, auctions of website (online auction) and misappropriation
and transfer of funds.
 Cyber cheating :-section 4/5 of IPC defines cheating
Under Section :
 who is ever deceiving any person proudulenty or dishonestly the
person so deceive to deliver any property to any person or to concept
that any person shall return any property or intentionality induces. The
person so deceived to do or aimed to do any, it he were not so
deceived and which act or a mission causes or is likely to cause
damages or harm.
 Dishonest concealment of fetch is a deception.
 Eg. Mr.A boy exhibition to Z. a fall sample of an article intentionality
deceives Z into believing that the article corresponding with the sample
and there by dishonestly involves Z to buy and pay for the article. In this
case A has Cheated.

 Punishment :-
The punishment for cheating is an imprisonment which may extended
upto 1 year or with fine or both as per section 4/7

 Virus:
Section 43 Act IT Act says: -
 Computer virus move, any computer virus any computer instruction
info. Data or programming that are destroy, damage or adversely
affected the performance of computer.
 The edge it self to another computer resource and program, data or
instruction is executed or some other event take place in the computer.
 Example:-
The low bug virus come as an attachment to an e-mail with the subject I
love u and when the victim clicks on attachment all the files in the
victim’s computer with junk data thereby destroy or damaging all the
details.
 Damage and computer content to destroy, to modify to re-arrange any
computer by anomies.
 Fine: -
  The info at IT Act in the damage concern not executively to the victim
the Act at planning virus or other content marks in the computer is also
liable at mischief which is define under section 45.
 Mischief many, if a person with intent to course is knowing that is out is
likely to course, wrong to loss or damage to the public or any person is
said to committee mischief.
 The punishment for mischief if the loss is ranging from rs.50 lac is
punishable with imprisonment for expectedly two years all with fine or
with both (imprisonment & fine together).
 Deformation & harassment &email abuse: -
 Deformation means, injury or lowering down reputation of accuses.
 Deformation is an offence under the IPC (India Panel court) consist of
following essential:
1) Publishing any bad articles are writing which is lowering the
representation of person.
2) Imputation is made intension of causing to the reputation of a
person.
3) Imputation is made by overall words is damaging reputation of a
person.
 These are three types of determination
1) Libel :- This is are retained definition.
2) slander :- This is oral definition.

 Punishment :-
Section 500 of IPC gives the following punishment.
1) An imprisonment for a term which many extended to two years.
2) With fine many also be post.
3) Imprisonment and fine many both many be avoided together.

 Exception :-
In the following bases the imputation doesn’t amount to be an offense.
1) Imputation which is true concerning any person if it is for public good
2) An in good faith regarding the conduct of any person and the following
any public question.
3) Publishing a true report of processing a court of justice.

Any expression if it is made in fetch representing the……………………………..

  Illustration :-
If in good fetch complaint of conduct at servent to 2 – master this is not del.
 Arrestment :-
Who ever creatives any other to course injury, body,reputation or property
with an internet to cause a long to that person is called “Arrastment”
If the thread is cause throught the committee the following Act
1) To cause deth gerious.
2) To cause destraction of property by fire to impute unhastity to a women.
 Punishment:-
The person is punishable with improvement for vectors which may or right or
both.
Women are the criminal to seek revenge or sheet arrestment.
Insulating the modesty offen upon her privancy is punishable with simple
impressement which may extrent to one year or with fine or with both.
 Cyber pornography :-
Punishment for publishing or transmitting of material at detecting children is
sexuality in explicit Act in electronic from is converted by section 67 of IT Act.
The pornography computer be made in following ways.
A,B,C,D punished or transmitted.
A) Material :-
Children is age in sexually explicit out or conduct.
B) Create a digital image, advertises, promotes, distribute, material in any
electronic form despectively children off seen or intenset, private children
relationship with one or more children and make sexual relationship.

The person involved in such attribute online is punish in the following.

1) The person is involved in such acivities is liable for two layers connection.
a) An impressement which many extended to 5 years.
b) Fine which may extended to 6 looks.
2) a) With an impressement which may extended to 7 years.
c) Fine which may extends to 10 lacks.
In this section the convisment is make where the child is below the age
18 years.
 Section 43 of IT Act says that if any person committee any of the
following he shall be likely as to paid damages by way of exceeding to
the affectively party to the following cases.
 1) Access without authority.
2) Downloading copyright or extruding any data without authority.
3) Intro. Of computer virus damage to computer database.
4) Distribution of computer system and computer network.
5) Denial of access(DOS)
6) Providing assessment to facilitate access changing.
7) Delectation, reflection or alternation of info.
8) Exceeding, consolation.

Penalty of failure to furnish into section:

Section 44 says that following fine impose penalty for any document or
report not exceeding rupees..
1) Penalty for failure (rs. 5000 everyday )
2) Penalty for failure for maintain for books of amount not exceeding for
rs.10000 Every day.
 UNIT II
CONTRACTS IN INFOTECH WORLD

 Contracts in Infotech World

 Since every E-commerce transaction like any other commercial
transaction is in essence a contractual relationship between the
parties there are following types of contracts in Infotech World.
 For example:-
1. E-commerce:-
 It is defined as the buying and selling of goods or rendering
of services using internet.
 E-Commerce is a technology to stream line the business
model creating, savings and increasing efficiency it is about
lowering the cost.
 Internet is the process of capturing and revolution a rising
commerce across the world.
 A growing demand for internet access through cell-phones
and television is also driving force in the growth of E-
Commerce.
 There are four types of e-Commerce transaction:-
a. Information Access: - Provides the user with a search
facility.
b. Inter Personal Communication: - Services provide the
users method of exchange information discuss ideas and
improve their co-operation.
c. Shopping Services : - Allow the user to purchase the
goods and avail the services through the internet.
d. Virtual Enterprises: - Our business arrangement where
trading partners sitting in two different places and even in
countries is able to join in business activities.
 Following are to be taken before entering into E-
transactions.
 i. A lawyer engaged to draft the agreement
must be properly briefed which will cover all
the aspect in the contract.
ii. Every manager and entrepreneur in the IT
needs to be aware at all legal aspects of E-
Contract.
iii. Every E-Consumer must understand the terms
of contract.
 The IT Act 2000 is not applicable to the following transaction by
virtue of section 1(4)
1. Negotiable investment Act 1881. Promissory note, Bill of
Exchange, Cheque.
2. Power of Attorney as defined in the power of Attorneys Act 1882.
3. Trust.
4. Will:- defined under Indian Succession Act.
5. Contract for sale of immovable property.
6. Any other clause or document as notified by the central
government.

 Types of Agreement used in Electronic Form:-

1. Shrink Wrap.
2. Click Wrap.

1. Shrink Wrap:-
 Shrink Wrap Contract or licensed agreement.
 The terms and condition which can be read and accepted by the
consumer after opening the product.
 The terms describe the shrink wrap plastic wrapping used to coat
software boxes.
 It is a practice to enclose warranty cards and contract terms inside
boxes containing products other than software’s.
 The terms all generally available to review after the product have
been bought and open.
  There are the following controversies regarding the shrink wrap
software’s
a. A consumer does not get the opportunities to know the terms and
condition of the software license before its purchase.
b. The terms in the contract are not connected because, it is
enforceable.
c. There is no chance to negotiate the contract.
d. They are for fixed terms of time.
e. They are void because they may be against public policy.

2. Click Wrap:-
 A click wrap agreement is mostly found as part of installation process
of software package. It is also called a click through agreement or
click wrap license.

 Types of click wrap agreement:-

1. Types and click:-
 Where the user must type accept or other specified word in and on
screen box and then click a submit. This displays acceptance and the
user cannot proceed to download or view the target information
without following the steps mentioned.

2. Icon clicking:-
 Where the user must click on an OK on every button on a dialogue
box or pop-up window a user indicate reaction.
 There are the following controversies Lapses.
a. It lacks bargaining power.
b. The term of service may not always appear on the web page. It
must be properly structured so as to enhance the credibility.
c. It user should be allowed to access the process easily.
 Formation of Contract under Indian Contract Act 1872:-
2(a) Offer/Proposal
2(b) Acceptance.
 Contract under Section 2(h)
 A contract enforceable by law is called an contract.
 Agreement after + Acceptance.
 Contract an agreement + it’s enforceable.
2(c) Agreement:-
 Every promise and every set of promise forming the consideration
for each other is any agreement.
 Agreement means, where a person is saying to another person to do
or not to do something and the other person is doing the same and
agreement is said to be born between them. This is also known as
“Offeror / Promisor” and the person who accept it is known as
offeree / Promisee.
 Enforceability means, that the agreement must be recognized by the
law.
2 (d) Consideration:-
Latin:-quid pro quo (Something in written).
 Consideration is called soul of contract and therefore, it is said that
no consideration no contract.
 Void:- An agreement not enforceable by law is called “Void
Agreement”.
 Voidable:- An agreement which is enforceable by law of the option
one or more of the parties there through but not at the option of
others is a voidable contract.
Voidable contract is also a contract where the consent of a party
is affected by any one of the following elements.
a. Coercion  Threat to the Body / Property.
b. Under influence  undue pressure.
c. Fraud.
d. Miss-representation.
e. Mistake.
 Communication of offer / Proposal and Acceptance :-
 The communication of offer or proposal can either be made by oral
way or written way an offer is said to be a complete offer.
 Communication of Acceptance:-
 An offeree often accepting the proposal can send it back to the
offeror but sometimes an acceptance is forwarded to the offeror
butmay not be reaching to the offeror.
 The law at this point is that nearly putting the acceptance in the
course at transmission such as it post pax, tellax is said to be
complete whether it is reaching to the knowledge of offeror or not.
 Revocation:-
 A proposal may be revoked at anytime before the communicate of
its acceptance an acceptance may be revoked at anytime before the
communication at it’s acceptance is received as against the acceptor
but not as the words.
 Contract formation on Internet:-
 Contract creates a relationship of right and obligations between the
parties Section 11, 12 and 13 plays important role in the for nation at
E-record. Could be attributed to the originator if it was sent by:-
a. The originator himself.
b. A person who may be the agent / authority to act at behalf of the
originator.
c. An information system programmed by or on behalf of the
originator to operate automatically.
 Place:-
 Creation an termination at right and obligation of the parties in the
contract.
 Territorial jurisdiction.
 Applicability of laws of land evidentiary consequences.
 Time:-
 Determination of the time at period at limitations for initiating
litigation (case).
 Timely compliance at legal obligation (duties) and procedures.
 As we know that electronic records or in the form of date,
records, images or sound stored received or sound in electronic form
or microfil at the same time there are certain problems in
ascertaining the time and place of dispatch and receipt of electronic
records.
 As well the geographical borders may not be located at the time
of making the contract.
 UNIT – III

META-TAGGING :-

Meta tagging is a process whereby the owner of website places certain words
on his website so that the site figures on search engines web a search of that
particular words is made. The reason behind is that a company name or the trade
mark maybe improperly use as a meta tag to divert the internet user to other
website
For example:- Mumbai University website when a student visits www.mu.ac.in he
does not see the description and keywords meta tags are illustrated as below
Meta Content = “Education, Syllabus, Examination, Notices”
Name = Description
 Legislative and Innovative Moves Against Cyber SQUATTING

The following measures were adopted against the cyber squatting

1. The national association of software and service companies has

recommended that the copyright Act should be amended to curb the
cyber squatting.
2. Anti Cyber Squatting Consumer Protection Act was passed in US in
1999
3. Section 43 of Trademarks Act prohibits the bad faith registration of
domain name, which are similar to any registered trademarks.
4. Traditional remedies are available under the Trademarks Act and the
courts are also allowed to pass the order for transfer of or for feature of
the domain name.
5. Innovative mechanism have been introduced to register new domain
name extension such as (.aero, .museum, .coop, .biz, .info, .pro, .name).
6. If two or more applications are field for the same name the registrar in
all application and randomly choose the registrant .
7. The affected party has the power to stop the domain name and under this
procedure the domain name could be frozen for a month and the dispute
shall then be settled.
8. With the emergence of e-commerce some more innovative measures
could come in the light to deter the cyber squatters.
COPYRIGHT:-

Copyright under (Intellectual Property Right  IPR )

 Meaning and Definition of Copyright under Copyright Act 1957.

 Subject to the provisions of copyright Act any.
1. Original literary, dramatic, musical and artistic work.
2. Cinematography films and,
3. Sound recording

 Copyright in the aforementioned works could not sussist unless

a. In case of a publish work the work is first published in India and
where the work is first published outside India, the author is at the
date of such publication or in a case where the author was dead at that
date was at the time of his death a citizen of India.
b. In case of unpublished work other than work of architecture the
author is at the date of making of the work a citizen of India or
domiciled in India.
c. In case of work of work of architecture the work is located in India.

 The said conditions does not apply to foreign works.

 In case of joint authorship the following conditions must be satisfied.
 The copyright shall not be subsist.
1. In any cinematography if a substantial part of film is an infringement
of copyright in any other work.
2. In any sound recording made in respect of Literary, dramatic or
musical work it in making a sound recording the copyright in such
work has been infringe.

Copyright software’s and computer programming :-

 Copyright Act 1957 governs software computers and includes in the category
of literar work.
 Literary works specially includes computer programs, tables and compilations
including computer database.
 Computer program means a set of instructions expressed in words, courts,
schemes or in any other form, including a machine readable medium, capable
of causing a computer to perform a particular task or achieve a particular
result.
Meaning of Copyright:-

 Copyright means the exclusive right subject to the provision of this act to do
or authorized to do of any of the following Acts.

a. In case of literary, dramatic, musical work, not being a computer program.

i. To reproduce the work in any material from including the storing of it

in any medium by electronic means.
ii. To issue copies of work to the public not being copies already in
circulation.
iii. To perform the work in public or to communicate it to the public.
iv. To make any cinematography or sound recording in respect of the
work.
v. To make any translation of the work.
vi. To do in retention to a translation or an adaptation of work.
vii. Subject to sub-class 1-6.

b. In case of computer program.

i. To do any Acts specified in clause A (from sub-class 1-7).

ii. To sell or give on commercial rental or offer for sale or for
commercial rental any copy of computer program.

c. In case of artistic work

i. To reproduce the work in material form including depiction in 3D of

a 2D work or in 2D of a 3D work.
ii. To communicate the work in public.
iii. To issue copy of the work to the public not being copies already in
circulation.
iv. To include the work in any cinematography.
v. To make any adoption of the work.
vi. To do in relation to an adoption of work any of the Act specified in
realtion to the work in subclass 1-4.
 d. In case of cinematography.

i. To make a copy of film including a photograph of any image forming

part therefore.
ii. To sell or give on hire or offer for sale or hire any copy of the film,
regardless of whether such copy has been sold or hire on earlier
occasion.
iii. To communicate the film to the public.

e. In case of a sound recording.

i. To make other sound recording embodying it.

ii. To sell or give on hire or offer for sale or hire any copy of the sound
recording regardless of whether such copies are sold or given on hire
or earlier occasion.
iii. To communicate the sound recording to the public.

 The copyright subsist in public as well as published and

unpublished work.

OWNERSHIP OF COPYRIGHT:-

 Section 17 defines the first owner of copyright the author of any work shall be
the first owner of copyright.

a. In case of Literary, dramatic, or artistic work made by the author during his
employment to proprietor of a newspaper, magazine or similar periodical
under a contract or service in newspaper etc said proprietor will be the first
owner in the absence of any contract to contrary.
b. On the other hand if the person is not under service or under an agreement
the author will be the first owner of copyright.
SECTION 30:-

 Section 30 of the copyright explains the ways for granting licenses.

1. The owner of the copyright will get the license for his existing work.
2. The prospective owner of the copyright may also get the license for his
future work.
3. The license for the copyright must be granted by the licensing authority in
writing to the owner of the copyright or to his authorized agent.

The terms of Copyright:-

 In India according to Section 22 of the copyright Act the copyright in

computer program subsist for 60 years from the beginning of the calendar
year, next following years in which the author dies.
For example:- Surbhi creates computer program in 2016 and she dies on 30th
March 2017. The copyright in the computer program will subsist for 60 years
from 1st January 2018.
 The international copyright of 1958 is specifically says that the copyright Act
1957 were made applicable to works publish in countries covered under Berne
condition.

Copyright Infringement:-

 Section 51 of copyright Act deals with that infringement of copyright.

 A copyright id deemed to be infringe as under the following cases.

a. When any person without a license granted by the owner of copyright or

the registrar of copyright under this Act or in contravention of any
condition of license so granted or of any condition imposed by a competent
authority under this Act.

i. Does anything, the exclusive right to do which is by this Act

conferred upon the owner of the copyright, or
ii. Permits for profit any place to be used for communication of the work
to the public where such communication constitutes an infringement
of the copyright in the work, unless he was not aware and had no
reasonable ground for believing that such communication to the
public would be an infringement of copyright, or
 b. When any person-

i. Makes for sale or hire, or sells or lets for hire, or by way of trade
displays or offer sale or hire.
ii. Distributes either for the purpose of trade or to such an extent as to
affect prejudicially the owner of the copyright, or
iii. By way of trade exhibits in public, or
iv. Import in India, any infringing copies of the work provided that
nothing in sub-class
v. Shall apply to import of one copy of any work, for the private and
domestic use of the importer.

Explanation of Section 51:-

It is observed that the reproduction of literary, dramatic, musical, artistic work

in cinematography is treated as infringement is treated as infringement of copyright.
A copyright is also infringed when a person is not having license and using or
enjoying as an exclusive right violates the copyright.
The supreme court of India has lay down some important principles for
ascertaining the copyright and its violation.

1. There is no copyright to an idea, principles, subject-matter, themes, plots or

historical and legendary facts. The violation of copyright subsists and
confined to the form, manner and arrangement and expression of the idea.
2. If a person is developing on depending on same idea but in a different manner
as we know that source is the same and the similarities are bound to occur.
The court on this point is on the opinion that if the defendant work is same
which little variation here and there it is nothing but a literal imitation this
amounts a violation of copyright.
3. The violation copyright depends upon the determination of readers or viewers
and if they are on the opinion that the subsequent is the true copy of the
original one.
4. The violation of copyright amounts to the Act of piracy.
LIABILITIES:-

 The infringement of copyright shall be held liable under the copyright Act the
damage can be made, fine may be closed, and imprisonment can be avoided.
The owner of copyright has the right to claim damages by means of
injunction, etc.
Punishment and Penalty under the Copyright Act:-

 Section 63 to Section 69 provides for punishment and penalties

 Section 63 says if any person knowingly infringes the copyright in a work or
any other right conferred by this Act, shall be punishable with the following
with an imprisonment for a term which shall not be less than 6 months may be
extended to 3 years and with fine which may not less than 50,000/- may be
extended to rupees 2,00,000 /-.
 If a person subsequently convicted for punishment 2 nd time infringement shall
not be less than 2 years may be extended to 3 years and fine not less than
1,00,000/- but may be extended to rupees 2,00,000/-.
 If a person knowingly infringes a copy of a computer program is liable for
imprisonment for a term which shall not be less than 7 days which may
extends to 3 years and with fine which shall not be less than 50,000/- but
which may extend to 2,00,000/-.
 The punishment depends upon the discretion on the court.
 Penalty for making false entries in register for producing or tendering false
entries shall be punishable which may extend to one year, or with fine, or with
both.
 Section 69 in the copyright Act deals with the offence by the companies. If a
person who is acting as a head of department and the offence was committed
he shall be held at but if he has taken all dew to prevent the offence he shall
not be liable.
Downloading, Hyper-/linking and Framing:-

 Downloading:- When a webpage is downloaded for the purpose of viewing.

This is not the infringement of copyright.
Technically the viewing and storage of material on a hard disk or on a
floppy is two different things.
When any material is posted on the internet it is presumed that it is done
for reading and viewing. Therefore the downloading of a webpage does not
amount the infringement of copyright.

 Hyper-Linking:- Linking is a system which permits the user to link the site
and through which internet users can browse the numerous website.
Hyper-Linking is a document on internet. It can be categorized into.

a. Surface-Linking :- surface –Linking directly and automatically takes

the user from linking site to the home page of the linked site.

b. Deep-Linking:- Deep-Linking implies that the user is linked directly

into the interior page of linked site and not the home page.

Illustration:- Consider the main page of the Mumbai University Website.

http://www.mu.ac.in
The above webpage consist of several links to other web pages.
For example:- If the user clicks on “Exam and Result” he will be taken
to the page containing details of examination and results of different courses.
At the same time the Mumbai University will not object if some one
provides a link to the Mumbai MU home page.
However if someone provides a link to a document “deep” in MU
website, then MU may have objection.
Deep Hyper-Linking may give rise to a claim for passing of an ordinary
user.
COPUTER SOFTWARE PIRACY:-

It is a global problem. Piracy means an unauthorized copyright, installation,

redistribution, or sale of software program./ it is a major problem of software
industry.
Piracy is a problem for software manufacturers authorized distributors. It is
affecting the revenues of the software manufacturers. The piracy affects the
following.

1. Loss of jobs.
2. Higher cost to the software industry and higher cost of software for legitimate
consumer.
3. Loss of taxes to the government.
4. Slowing the spirit of innovation in the field of computer science and
development of new software.

It is a serious issue there are lot of contradiction. A lot of profit are

earned by the pirated software.
Software piracy can be controlled up to certain extend the government of
India have acted seriously and adopted the following strategies to curd the
software piracy.

1. Removal of import duty on software.

2. Reduction in prices of software.
3. Awareness and training program for law enforcement agencies.
4. Prosecution in software piracy cases.
5. Media campaign against software piracy.
6. Punishment for infringement of copyright of computer program has
been made an offence and punishable with an imprisonment of 7 days
which may be extended to 3 years and fine with not less than 50,000/-
which may be extended to 2,00,000/-.
7. Computer Piracy is a non-bialable offence.
 UNIT IV
1. E-Commerce Taxation.
2. Real Problem in the virtual world.
3. Digital Signature.
4. E-Governance.

Q.) What is Permanent Establishment?

 There are two basic principles of taxation internationally.

1. Resident Based Taxation.
2. Source Based Taxation.
 As per the Indian Taxation Act 1961, India taxes their resident on their global-
income under the Resident Based Taxation.
 As for as Non-Resident they charges tax on their income sourced in that
country under Source Based Taxation.
 When a resident of one country gains salary from a source in another
country the likelihood of double taxation emerges on the grounds that one
country may tax that income on the source principle while the other country
may tax is on the residence principles.
 To avoid the double taxation, “Double Taxation Avoidance Agreement
(DTAA)” is introduced which includes the principle of Permanent
Establishment (PE) where the Non-Residence are exempted from Permanent
Establishment.
 For Example:- If a person is earning money country A and he is residence of
country B then in this case that person cannot be taxed in country A unless a
Permanent Establishment exist in country A.
 Permanent Establishment (PE) is a principle which is recognized by United
Nation, Organization for Economic Co-task Development (OECD) and USA,
model and used as fundamental instruments for taxing purview over
foreigners business exercise.
Q.) What is Permanent Establishment(PE)?
 Article 5(1) that is read as Article 5 class 1 says that:-
 A PE lays down the basic rule of a business activity carried on
through a fix place a business could constitute the PE of tax payer.
 Article 5(2)mentions several examples of fixed place of business this is
called a positive list
 Article 5(3) includes certain construction related activities and service
related activities within the scope of PE if such activities continue for a
certain period.
 Article 5(4) mentions certain activity not to be included this is called
negative list.
 Article 5(5) stimulates rules for data remaining when an enterprise is
represented by an agent.
 Article 5(6) deals with enterprises carrying an insurance business. And,
 Article 5(7), Article 5(8), set out the rules, in respect of enterprises
represented by an agent.

 PE in cross Border E-Commerce

 The committee of Fiscal Affairs of the OECD states that the underlined
principles can be capable to apply to commerce but principles of PE or
struggling to cross-border e-commerce because they are inappropriate
 For OECD model the following places are consider as permanent
establishment such as
1. Place of management.
2. A Branch.
3. An office.
4. An factory.
5. Workshop.
6. Mine.
7. Oil or Gas well or any other place of extraction of natural resources.
I. Website as PE:-
  The definition of PE requires a fix place from where the business of an
enterprise is carried on.
 Article 5 of OECD model treaty define the term “Place of Business” to
cover any premises, facilities or installations used for carrying on business.
 Therefore, PE refers to a geographical place of business. Since a web-
site by itself is a combination of software and electronic data therefore it
does not fit into the concept of PE because it does not have any physical
pressure.

II. Web servers as PE:-

 Geographical location of server has nothing to do with the business
activity in certain place and a website doing business in India may have its
server anywhere on the globe as well as for favorable tax treatment a
website may locate itself on a foreign address changing servers is a simple
exercise at minimum cost.

III. Can Internet service providers provide a PE

 It has been found that an ISP, generally, is not an agent of the
enterprise to which the website belongs because it does not have the
authority to conclude contracts for and on behalf of the enterprise.
 Hence, it is proved that the concept of PE cannot apply to ISP’s
 The Global Information Infrastructure Commission (GIIC) has
recognized that it is rare that ISP will have any authority to enter into any
contract on behalf of the customer. It is a technical service provider and
economically and legally independent body they are like telephone
companies who are providing technical mode of communication, hence,
they are not an agent.
 The United National Model Tax Treaty
 The UN model treaty based on an ideology that developing countries
are mostly net importers so in taxation of cross-border transaction priority
must be given to them.
 The UN Model gives more scope than the OECD model for the country
in which income has its source to assume the soul right to tax income.
 The UN Model is easy as compare to OECD model there are some
distinctive features between OECD model and Article 5 and Article 7 of UN
model which are as follows:-
1. The word or delivery doesn’t appear in the exclusion provision of UN
model. On the other hand in OECD Model some business which
maintain facilities like storage, display or delivery are exempted from
business such as under UN Model a warehouse used solely for delivery
and storage is regarded as PE.
2. An agents who delivers goods for Non-Resident enterprises qualifies as
PE under Un Model. On the other hand under OECD Model an agent
will not find PE where he simply delivers goods or where he is
independent.
3. The basic difference related to the definition of PE between the two
model treaties concern situations where there is no formal PE, yet the
income of enterprises is still held to be taxable under UN Model treaty.
On the other hand there is no need to find an independent
permanent establishment if the business activities are similar
Although the UN Model is liberal as compare to OECD Model but
it cannot be said to be appropriate for cross-border e-commerce.
 The law of Double Taxation Avoidance Agreements and Taxable
Jurisdiction Over Non-Residents, under Income Tax Act 1961

 The internet encourages global business it provides most efficient

easiest and cost friendly mode of communication between a business and
a consumer
 The Double Taxation Avoidance Agreement (DTAA) is essentially a
bilateral agreement enter into two countries the basic objective is to
promote and faster economic trade and investment between two
countries by avoiding Double Taxation.
 COPYRIGHT
 INTRODUCTION:-
 Present day Commercial and Non-Commercial or activities are
conducted through the use of Information Technology.
 The Information Technology implies by use of computer system and
computer network.
 By the use of computer to facilitate the work the activities are now
taken new dimensions and by enlarge conducted in virtual work through
the system of computer network and wireless network.

 DIGITAL SIGNATURE:-
 Authentication of document and protection of content of the document
are common by both online and physical world.
 As regard physical document it is possible by putting signature and
preserving it at safe place however as regards to electronic record it is
imperative to make that communication legally binding.
 In online communication there is always a fear of interception,
transmission, errors, delays, deletion, authenticity or verification of an
electronic message using internet as a medium.
 To make the recipient in such communication ensure that the message
received has not been modified or make sure that the sender cannot deny
that he has send signature are used.
 DEFINITION:- Digital Signature is defined as a short unit of data that
bears a mathematical relationship to the data in the documents context
and provides assurance to the recipients that the data is authenticate.
 SECTION3 of IT Act contains the provision as regard to Digital
Signature
i. Subject to the provision of this Act `
ii. The authentication of the electronic record shall be effected
by the use of asymmetric crypto system and hash function
which envelope and transform the initial electronic record
into another electronic record.
  EXPLANATION:- In simple word a hash function is algorithm which
creates a digital representation or fingerprint in the form of a hash value
 Steps in obtaining digital Signature
1. Subscriber applies to Certifying Authority for Digital Signature.
2. Certifying Authority verifies identity of subscriber and issue Digital
Signature certificate.
3. Certifying Authority forward Digital Signature to repository maintain
by controller.
4. Subscriber digitally signs electronic message with private key to
ensure senders authenticity.
5. Receiving parties receives message verifies digital signature public
key and goes to repository to check the status of subscriber
certificates.
6. It is checked by repository and inform back to receiving party.

 Public Key and Private Key in Digital Signature:-

 Digital Signature works on the basis of public key and private key.
 Public Key Cryptography uses a pair of mathematically related
cryptographic keys. If one key is used to encrypt information then only the
related key can decrypt the information.
a. A Public Key is something that you can make it public it is freely
distributed and can be seen by all users.
 A private key is unique key that is somewhat secret it is not share
amongst the user
 Public key used for encryption the sender user the public key
encryption to send confidential information .the information is to be sent
is encrypted using public key.
 The private key use for decryption, a private key is use to decrypt
information that has been encrypted using its corresponding public key.
The person using the private key can be certain that the information it is
able to decrypt but they cannot be certain who the Information is from.
 THE PRIVATE KEY FOR SIGNATURE:-

 If the sender wishes to prove to the recipients that they are the
Source of information they use the private key to digitally sign a
message.

 The legal recognition of Digital Signature:-

 Section 5 of the IT Act provides a legal recognition of digital signature
and liability of Certifying Authority.
 The role of Certifying Authority is very important.
1. Issues the Digital Signature certificate.
2. Managing the functioning of digital signature.
3. Provides evidence are proof in legal dispute
 As given under Section 18 of IT Act the function of controller of CA as
under.
1. Exercising.
2. Supervision over the activities.
3. Certifying Public Keys.
4. Determining the duties of CA.

 CERTIFYING AUTHORITY:-
 Section 17 – 35 deals with the provisions of regulating of CA.
 Participation of trusted 3rd party to certify for individuals identities and
their relationship to their Public Keys. This trusted 3rd party is called CA.
 The Hierarchy of CA is as under
1. Controller of CA.
2. Deputy controller.
3. Assistant Controller.
4. Certifying Authorities.
 Powers of CA
1. Exercising supervision over the activities of CA.
2. Certifying Public Keys of CA.
3. Laying down the standards to be maintained by CA.
4. Specifying the qualification and experience with employees of the CA.
5. Specifying the condition subject to which the CA shall conduct the
business.
6. Specifying the form and contents of Digital Signature certificates and
keys.
 UNIT-V
INDIAN EVIDENCE ACT
Indian Evidence Act 1872 and IT Act 2000.
 INTRODUCTION:-
 Digital Signature E-agreements, E-messages have made a complete
change in transacting the business with one and other.
 DEFINITION OF EVIDENCE IN INDIAN EVIDENCE ACT 1872:-
 Evidence means and include.
1. All statements which court permit requires to be made before it by
witnesses in relation to matters of Act under inquiring they are called
Oral Evidence.
2. All documents produced for inspection of the court such documents are
called Documentary Evidence
 DEFINITION OF EVIDENCE AFTER AMENDMENT BY IT ACT 2000
 Evidence means and include.
1. All statements which the court permits to be presented before the
court of law in the matter under inquiring are known as Oral
Evidence.
2. All documents including electronic records produced for the
inspection of the court are called Documentary Evidence.

 CHANGE BOUGHTT IN EVIDENCE ACT

 The IT Act has brought the following modification and electronic
records were also treated as documents such as
1. Writing as a document.
2. Words printed or Lithographed or Photographed are documents.
3. Map are planned is a document.
4. Inscription on a metal plate or stone is a document.
5. Caricature is a document.
 ELECTRONIC RECORD
 Electronic records means data, records are data generating, image are
sound stored, received are send in an electronic form or microfilm are
computer generated microfiche.

 DATA:-
 Data means a representation of information, knowledge, facts,
concepts or instructions which are being prepared or have been prepared in
a formulized manner and intended to be processed or have been processed
in computer system or computer network and may be in the form of
computer printouts, magnetic storage media, punched cards, punched taps
or stored internally in the memory of the computer.

 COMPUTER SYSTEM:-
 Computer system means a device or collection of devices including
input and output devices excluding calculated which are non-programmable
and capable of being used in conjunction with external file which contains
computer program, electronic instruction input data that performs logic
arithmetic, data storage communication control.

 PROBLEMS OF ORIGINAL ELECTRONIC RECORDS AND SECONDARY

EVIDENCE:-
 There is a problem in distinguishing the original electronic record which
is generated from and lies in computer memory which is supposed to be
primary evidence on the other hand the photo copies brought and submitted
before the court are called secondary evidence. Now question is whether to
bring computer in the court to authenticate evidence in this regard Section
63 and Section 65 have removed the difficulties by permitting secondary
evidence of electronic records through printout and floppy’s.
 PROOVING DIGITAL SIGNATURE:-
 Indian Evidence Act has amended in 2000 states that except in case of
secure electronic signature, if the electronic signature of any subscriber is
alleged to have been fixed to an electronic record the fact that such
electronic signature is the electronic signature of the subscriber must be
proved.
 Section 73(A) provides that how to verify digital signature.
 In order to ascertain whether the digital signature is that of a person by
which it is alleged to have been affixed the court may direct.
a. That the person or the controller or the certifying authority to produce the
digital signature certificate.
b. Any other person to apply the public key listed in the digital signature
certificate and verify the digital signature purported to have being a fixed
by that person
 EXPLANATION:-
 For the purpose of this section controller means person appointed by
law under Section 17 of IT Act 2000.
 When the court has to form an opinion as to the Digital Signature of
any person the opinion of CA which has issued the Digital Signature
Certificate is relevant
 For Example:- If Mr. B has filed a case against Mr. A. Mr. A relied on an
e-records and alleged he has fixed a Digital Signature on the same
which is disputed by Mr. B. if he wants to prove his Digital Signature
then he has to produce before the court his Digital Signature
Certificates. That states public key and request the court to direct any
person to apply that public key upon e-records.
Therefore, it can be said that the digital signature certificate plays
an important role in digital signature proving it is accepted as an
evidence and the court shall presume that unless the contrary is
proved the information given is a solid evidence and it has being
automatically verified.
 PROOF OF E-AGREEMENT:-
 E-agreement to e-mail message between the parties.
a. With digital signatures of the party sending the message.
b. Without digital signature.
 Section 85 of the Indian Evidence Act the following presumption is
created for e-agreement signed by both the parties.
 Section 85(A) refers the following presumption
1. The court shall presume that every e-record purporting to be an
agreement containing digital signature of the party was so concluded by
affixing digital signature.
2. If the matter is in question the burden of proving lies on the shoulder of
the person disputing the presumption.
3. As per the Indian evidence Act the term of contract, brands and other
documents of disposition of property or the form of document therefore
no proof is required to be given in terms of e-contracts or e-agreement.
 We know that e-records and e-message is a type of documentary
evidence now-a-days many people are using emails. Email message can easily
be manipulated so it is important to take precaution so as to prove the
messages as an evidence
 Digital Signature enhances the credibility of the email message it is
used to identify the signatory and grant integrity to the data.
 The acknowledgement of the receipt is an important document
because it identify the originator and his address and of the sending and
receiving message.
 Acknowledgement of receipt:
 Section 12 says the following:-
1. Where the originator has not stipulated that the acknowledgement
of receipt that the e-records to be given in particular form or by
particular method in this case the acknowledgement may be given
by.
a. Any communication by the addressee, automated or otherwise.
 b. Any conduct of addressee is sufficient to indicate to the originator
that the e-record has being received.
2. Where the originator has stipulated for the binding unless
acknowledgement has send the e-record shall be deemed to have
never being sent by the originator.
3. Where the originator has not stipulated that the electronic records
shall be binding only on receipt of such acknowledgement and the
acknowledgement has not being by the originator may give notice to
then the originator may give notice to the addressee stating that no
acknowledgement has been received and is allowed to treat the e-
record has never being send.
 There may be the following question:-
1. Identity the originator
2. E-message receipt
3. The identity of the message as received by the addressee
4. The content of the e-message are not changed
5. Contents of the electronic

 PRESUMPTION TO THE E-MESSAGE:-

 The court may presume that e-message forwarded by the originator
through an email server to the addressee to whom the message is supposed
to be addressed corresponds with the message as fed into his computer for
transmission but court shall not make presumption as to the person by
whom such message was send.
 Section 13 says about time and place of dispatch and receipt of
electronics records in the following ways:-
1. If the originator and the addressee have one or more than one place of
business the principle place of business shall be place of business.
2. If the originator and addressee does not have the place of business is
usual residual shall be presume the place of business.
3. In case of company the place of business is the place where the company
is registered.
Q.) Amendments to the banker books of account under Evidence Act 1891 and
RBI Act 1934?

 The IT Act has amended the banker book to Evidence Act to confer
equal status on e-records as compare to paper based document if a certified
copy of printout of bankers books has to be given then such printouts must
be accompanied by 3 certificates.
 Section 2(A) has been inserted in the bankers book Evidence Act.
 Conditions laid down:-
a. A certificate to the effect that it is the printout of such entry or a copy of
such printout by the principle accountant or branch manager.
b. A certificate by a person incharge of computer system containing a brief
description of a computer system and the particulars of :-
1. A safeguard adopted by the system to ensure that the data is entered
by an authorized person.
2. Safeguard also adopted to prevent any authorized change of data.
3. Safeguard also adopted to regain the lost data due to system failure.
4. The safeguard to the manner in which the data is transferable
removable media like floppy’s, disk, tapes and other storage devices.
5. The mode of verification to transfer the accurate data.
6. The mode of identification of such data storage devices.
7. Safeguard to tempering with the system.
8. Safeguard to protect the integrity and accuracy of the system.

c. A certificate from the person incharge of the computer system that to the
effect to the best office knowledge and belief that all data was genuinely
transferred to the person under which the printout is in question.
 THE RBI:-
 Section 58 of RBI 1934 through the IT Act 2000 the central board of RBI
has also being granted power for
 The regulation of fund transfer though electronic means between the
bank or banks and other financial institution referred to in class (C) of Section
45(1) including laying down of the condition subject to which banks and
other financial institutions shall participate in such fund transfer, the manner
of fund transfer and the rights and obligation of the participate in such fund
transfer.
 CONSUMER PROTECTION ACT
Q.) Who is Consumer and what are the objects of Consumer Protection
and whether cyber consumers are covered under the consumer
protection act?
 The Consumer Protection Act is a social legislation it came into being
after the direction of United Nation Organization instruction that all
members of UNO must have its consumer law.
 The main objective of the consumer protection is to provide a better
protection and to minimize the sufferings of consumers for these consumer
councils were established and consumer dispute redressed agencies were
also established.
 The main object of the act is to protect the consumers from
exploitation.
 Objectives:-
 The main objectives of consumer are as under:-
1. The right to be given protection against the marketing of the goods
which are hazardous, dangerous to the life and property.
2. Right to get correct information on the quality, quantity, standard
and price of the goods that is to protect the consumer from unfair
trade practices.
3. The right to be able to make transform a variety of product at
competitive price.
4. The right to seek redressed against unfair trade practices or
exploitation.
5. The right to consumer education.
6. In order to meet the said objectives, to provide for the establishment
of consumer councils and authorities.
7. To empower the consumer council and other authorities to settle
consumer dispute and other matters connected with.
Q.) Who is Consumer?
 Section 2(D) consumer means any person who
1. Buys any goods for the consideration.
2. Uses the goods and pays the consideration.
3. Hires the goods and pays the hiring charges.
4. Avails of any services of service provider for a consideration which has
been paid are promised to be partly paid or fully paid.
 Explanation:- If any goods are purchased for commercial purpose that
does not cover under consumer protection such as goods purchased for
resale.
 Are cyber consumer are covered under consumer Act:-
1. The cyber consumers are same as healthy consumer only there is a
difference in purchasing the goods or hiring the services.
2. Since the cyber consumer does not come face to face with the seller in an
online purchase of goods or hiring of services. The risk of defective goods
may be delivering.
3. As the goods are purchased online from the cyber market and delivered
later and the consumer does not get the opportunity to examine them.
4. Similarly E-commerce players including manufacturer, supplier, retailers
and service provider in India and abroad catering to the need of Indian
consumer must also be responsibility towards them under the Consumer
Protection Act.

Q.) Definition of words used in Consumer Protection Act.

1. Goods and Services.
2. Consumer complaint.
3. Defect and Deficiency.
4. Restrictive and unfair trade practices.
Q.) Relief under Consumer Protection Act
1. Beware Consumer.
2. Consumer Dispute Redressal Agencies (Court)
a. District Forum.
b. State Commission (Forum).
c. National Commission (Forum).

 DEFECT AN DEFICIENCY:-
1. Defect:- according to Section 2(1)(F) defect is defined as.
 Any fault, imperfection, short coming, or in adequacy in the quality,
quantity, potency, purity or standard which is required to be maintained
by or under any law for time being enforced or is claimed by the trader in
any manner what so ever in relation to any goods.
 Example:- Certain defects were found in the construction of a flat after
use by the owner of the flat. A case must field against the Tamil Nadu
housing board which denied its liability that it was stated in the
agreement that the occupation of the flat by the purchaser could be with
full knowledge of its nature of construction and neither the purchaser nor
anybody on behalf of the purchaser have the right to claim the
compensation regarding the defect in the construction. It was held by
National Commission (Court) that the complainant (purchaser) cannot be
debarred from claiming the compensation.

2. Deficiency:- Deficiency is defined under Section 2(1)(G).

 Deficiency means any fault, imperfection, short coming or in adequacy
in the quality, nature and manner of performance which is required to be
maintained by or under law of time been enforced or has been undertaken
to be performed by person in pursuance of a contract or otherwise in
relation to any service.
 Example:-
Mr. A booked a tractor from Surya agencies and paid Rupees 5,000/- as
advance money the total cost of the tractor at that time was of Rupees
1,50,000/- in the year 1985. The Surya agency have started giving tractors to
those who applied after Mr. A after sometimes in the year 1987 Mr. A got
the intimation of delivery of the tractor but by that time the cost of the
tractor was increased to Rupees 2, 00, 000/-. Mr. A has to suffer Rupees 50,
000/- for not getting the delivery of the tractor and those booked the tractor
after him got the delivery.
Mr. A filed a complaint against Surya agency for delaying in services and
also requested to get the compensation for his mental agency.
The court held that this was a deficiency in the services and Rupees
50,000/- with an interest of 18% should be given and further Rupees 2, 500/-
compensation will also be paid for mental torture with an interest of 18%
should be given and further Rupees 2, 500/- compensation will also be paid
for mental torture.

 Consumer Complaint:-
 Relief under Consumer Protection Act:-
 The Consumer Protection Act has the following power to grant the
reliefs to the consumers against the opposite party.
1. To remove the defects from the goods.
2. To replace the goods with new goods free form all the defects.
3. To return the price to the complainant and pay the compensation for the
negligent to remove the deficiency in the services.
4. To discontinue the unfair trade practices.
5. Not to offer hazardous goods for sale.
 Beware Consumer (Responsibilities or Duties of Consumer):-
 Still the consumers are facing the same problem else the problems of
19th century there is a little change in the suffering of the consumer in today
although the Act has been passed in the year of 1986 the consumer needs to
be made aware of their rights as well as their duties there is also a need to
consumer education. The government of India started a National Level media
awareness campaign (“Jago Grahak Jago”) in 2005.
 The slogan Jago Grahak Jago has become a household name as a result
of publicity campaign.
 However a consumer have the following responsibility and has to
perform the following duties:-
1. Examine the expiry date of the product.
2. Check the MRP of the product before buying.
3. Check the quality of Mark on the product.
4. Check the Warranty and Guarantee Term.
5. Check the Net Quantity on the package.
6. Check the name of the goods.
7. And always ask for bills.
8. Ask the durability of the product from the seller.
9. Ask for exchange and return term.

 Consumer Dispute Redresssal Agency:-

 These are the quasi judicial bodies or court established by the
Consumer Act to decide the complaint of the consumer.
 This is the agency by which the compensation in the form of the reliefs
to the consumer is granted.
 This is a 3 Tier at the lowest level there is forum called District Forum.