LEGALITY OF E-SIGNATURES IN INDIA

CONCEPT OF E-SIGNATURES
Electronic Signatures are such as being representative of one’s identity. With the course of time
e-signatures have become an important part of the legal industry. Earlier the concept of e-
signatures was not prevalent in India but due to the advancement & development in technology
the concept of E-signatures has emerged a lot in today’s era. Under the Indian Contract Act,
1872 section 10 talks about a valid contract which means a contract enforceable by law to which
both the parties agree and sign. A signature is basically an acceptance by an Individual to any
agreement or contract which he might be entering into. The government of India is also
promoting various e-platforms to the public to transact and to promote the goal of digital India.
E-signatures are quite beneficial as they are secure, reliable and environment friendly in
comparison to handwritten signatures or thumb impressions.
WHAT ARE E-SIGNATURES UNDER THE INDIAN LAW?
In the International sphere the concept of e-signatures had evolved in the 20 th century itself.
There was a lot of ambiguity and hesitance among the people to adopt this concept as there was
no legal framework governing it. Thus, after a lot of research the United Nations in 1998 came to
a conclusion that a proper legislation should be provided for the e-signatures as it had become
one of the fastest growing concepts across the globe. Thus, to protect the interests and beliefs of
the people a proper legislation was necessary to be made.
The Indian government took note of the UN’s observation of 1998and it understood &
recognized the importance of e-signatures in the industry. After which the Indian government for
the first time Initiated to provide a proper legislation to the concept of e-signatures in the
country. E-signatures has been covered under section 2 (a) of the Information Technology Act of
2000 which is concurrence to the United Nations Commission on International Trade Laws
model law. This enactment assumed the e-signatures the same legal status as that of hand-written
signatures in India.

LEGALITY OF E-SIGNATURES UNDER THE INDIAN LAW:

E-signatures are legally binding upon the parties to the contract under the IT Act. Due to the e-
signatures, e-contracts have also been promoted which has helped in the investment development
in India and also in the growth of the country. The IT act recognizes the concept of e-signatures
and states contracts that are made electronically cannot be held to be invalid. Any e-signature
which is a combination of the E-KYC (includes PIN) & Aadhar Identity which is a 12-digit
number by the recognized authority. Also, the e-signer can verify the signature through the
digital signature which has been generated by the asymmetric crypto-system and hash function.
It is one of the techniques of e-signatures as followed under IT act under the Government welfare
programs.
WHAT ARE THE MANDETORY REQUIREMENTS TO CONSIDER AN E-
SIGNATURE TO BE VALID?
There are certain conditions which are required to be fulfilled for the e-signature to be valid.
 The individual signing any document shall be linked to the person’s digital identity
issued by the government.
 During the signing of the document the individual shall have control over the digital
device over the transaction is taking place.
 A certifying Authority shall issue a signing certificate which has been recognized under
the Information Technology Act.
 The Signed document shall be traceable if any modifications are made once the document
has been signed.
 During the signing process an audit trail shall demonstrate the necessary steps.
WHAT ARE THE CIRCUMSTANCES AFFECTING E-SIGNATURES?
It has been seen that e-signatures are mostly allowed in all types of business and transactions. As
there are various situations under which it is necessary to have handwritten signatures and e-
signatures are not allowed in circumstances as promissory notes, wills, trust deeds etc. According
to the Article 6 of the UNCITRAL Model law every nation implementing e-signatures must
follow certain requisites such as the e-signature shall be retraceable i.e. linked to the original
source as well as controllable by the individual which makes it reliable for the people to use.
PUNISHMENT UNDER INDIAN LAW:
Due to the advancement in technology a lot of criminal offences have been committed with
respect to e-signatures and has urged the government to impose necessary implications. There
have been cases like Identity theft done by frauds to take disadvantage of someone else’s identity
and is punishable under section 66 of the IT Act.
Another offence which attracts liability is the case of Misrepresentation. This is also punishable
under the IT act when one person conceals certain relevant facts from the other party in order to
get his consent over the agreement.
Lastly, section 73 and 74 of the IT act attracts liability against publishing of false e-signatures by
hacking others personal information and using it for their own benefits. This kind of offence is
one of the grave offences as compared to the above.