QUESTION 1 —
**“Information Technology Act, 2000 is a facilitating, enabling and a regulating Act.”
Discuss the origin, object and scope of the IT Act, 2000. Also discuss the fundamental principles of e-commerce under the UNCITRAL Model Law.”**
1. Origin of the Information Technology Act, 2000—(How and Why It Came Into Existence)
Before 2000, India did not have any law for:
- E-mails
- Online shopping
- Electronic documents
- Digital signatures
- Cybercrimes
Everything was based on paper documents, handwritten signatures, and physical contracts.
But in the 1990s:
- Internet started spreading fast.
- Businesses began using computers.
- E-commerce companies came into existence.
- Fraud, hacking, data theft also began.
- Government services also started going online.
At the same time, in 1996, the United Nations Commission on International Trade Law (UNCITRAL) published the Model Law on Electronic Commerce.
This Model Law told all countries how to legally recognize electronic transactions.
India decided to adopt this modern approach and passed the Information Technology Act, 2000 on 17 October 2000.
Thus, the IT Act originated because:
- Internet and e-commerce were growing.
- Need for legal recognition of electronic records.
- Need to recognize digital signatures.
- Need to punish cybercrimes.
- Need to follow international standards (UNCITRAL 1996).
2. Why IT Act is called a Facilitating, Enabling and Regulating Act
(A) Facilitating Act — It Helps Digital India Function
It facilitates (helps) electronic activities by:
- giving legal status to electronic records
- allowing electronic contracts
- allowing digital signatures
- promoting e-governance
Example:
Email = equal to written letter
Digital signature = equal to physical signature
(B) Enabling Act — It Allows New Digital Methods
It enables (allows) new digital systems like:
- filing returns online
- e-tenders
- e-banking
- online agreements
- government forms submitted electronically
This makes business fast and easy.
(C) Regulating Act — It Controls and Punishes Misuse
It regulates digital activities by:
- punishing cybercrimes
- punishing pornography
- punishing identity theft
- punishing hacking
- regulating intermediaries (YouTube, Meta, WhatsApp)
- controlling digital signature authorities
Thus IT Act is three-in-one law:
It helps, permits, and controls.
3. Objectives (Purpose) of the IT Act, 2000
(i) Legal recognition of electronic records
To ensure electronic documents are accepted in courts, schools, offices, banks etc.
(ii) Legal recognition of digital signatures
Digital signatures can be used like handwritten signatures.
(iii) Encourage e-commerce and e-governance
Promote paperless transactions and government services online.
(iv) Prevent cybercrimes
To control new digital offences like hacking, data theft, email fraud, online harassment etc.
(v) Create authorities
The Act establishes:
- Controller of Certifying Authorities
- Adjudicating Officers
- Cyber Appellate Tribunal
(vi) Match global standards
Align Indian law with UNCITRAL Model Law to support international trade.
4. Scope of the IT Act — (What All Areas It Covers?)
The IT Act covers a very wide range of digital activities:
1. Electronic Records (Sections 4–10)
- E-documents made legally valid
- Secure electronic records
- Secure electronic signatures
2. Digital Signatures
- Legal recognition of digital signatures
- Rules about verification
- Role of Certifying Authorities
3. E-Governance (Sections 6–10)
Government can:
- accept electronic records
- receive online applications
- issue online notices
- store data electronically
4. Cybercrimes (Chapter XI, Sections 65–78)
Covers crimes like:
- hacking (Sec 66)
- identity theft (Sec 66C)
- cheating by impersonation (Sec 66D)
- violation of privacy (Sec 66E)
- cyber terrorism (Sec 66F)
- obscene material (Sec 67, 67A, 67B)
5. Liability of Intermediaries (Section 79)
Intermediaries like:
- YouTube
get safe harbour protection if they follow the law.
6. Regulation of Certifying Authorities (Sections 17–34)
They issue digital signature certificates.
7. Extra-Territorial Jurisdiction (Section 75)
If a crime happens outside India, but affects a computer in India, the Act applies.
5. Fundamental Principles of E-Commerce (UNCITRAL Model Law, 1996)
India accepted these principles while drafting the IT Act:
(1) Functional Equivalence Principle
Electronic records = Paper records
Digital signatures = Physical signatures
Meaning:
Law should treat both equally.
(2) Technological Neutrality
Law should not force users to use a particular technology.
Any secure technology should be acceptable.
(3) Non-discrimination Principle
No document should be rejected only because it is electronic.
(4) Reliability and Security
Electronic records must be reliable, secure, verifiable.
(5) Autonomy of Parties
Parties are free to:
- choose how they want to communicate
- which technology they want to use
(6) Time and Place of Dispatch and Receipt
The model law gives rules for:
- when an electronic message is considered sent
- when it is considered received
- where it is legally assumed to be delivered
These rules are adopted under Sections 12 to 14 of the IT Act.
(7) Consent of Parties
Electronic transactions need the consent of parties, either express or implied.
6. Conclusion — (Exam Scoring Summary)
The IT Act, 2000 is a modern, comprehensive and globally aligned law meant to promote electronic communication, enable digital transactions, and regulate cyber offences.
It is based on the UNCITRAL Model Law and ensures that India’s digital economy functions smoothly.
Thus it is correctly called a facilitating, enabling and regulating Act for the information age.
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