Section 85B of IEA : Section 85B: Presumption as to electronic records and electronic signatures.

Explanation using Example

Example 1:

Scenario: A company, XYZ Pvt. Ltd., enters into a contract with ABC Ltd. for the supply of goods. The contract is signed electronically by both parties using secure digital signatures.

Application of Section 85B:

• During a dispute over the terms of the contract, XYZ Pvt. Ltd. presents the electronically signed contract as evidence in court.
• According to Section 85B(1), the court will presume that the secure electronic record (the contract) has not been altered since it was signed, unless ABC Ltd. can prove otherwise.
• Furthermore, under Section 85B(2)(a), the court will presume that the secure electronic signatures were affixed by the respective parties (XYZ Pvt. Ltd. and ABC Ltd.) with the intention of signing the contract, unless there is evidence to the contrary.

Example 2:

Scenario: An individual, Mr. Sharma, receives an email from his bank, Bank of India, containing a secure electronic record of his monthly bank statement. The email is digitally signed by the bank.

Application of Section 85B:

• Mr. Sharma notices an unusual transaction in his bank statement and decides to challenge it in court.
• When the bank presents the secure electronic record (the bank statement) as evidence, the court will presume, under Section 85B(1), that the bank statement has not been altered since it was sent to Mr. Sharma, unless Mr. Sharma can provide evidence to the contrary.
• Additionally, under Section 85B(2)(a), the court will presume that the secure digital signature on the email was affixed by the bank with the intention of approving the electronic record, unless Mr. Sharma can prove otherwise.

Example 3:

Scenario: A real estate transaction is conducted between Mr. Verma and Mrs. Gupta, where the sale agreement is signed electronically using secure digital signatures.

Application of Section 85B:

• Later, Mrs. Gupta claims that the sale agreement was altered after she signed it and disputes the terms of the agreement.
• In court, Mr. Verma presents the electronically signed sale agreement as evidence.
• According to Section 85B(1), the court will presume that the secure electronic record (the sale agreement) has not been altered since it was signed, unless Mrs. Gupta can provide evidence to the contrary.
• Under Section 85B(2)(a), the court will also presume that the secure digital signatures were affixed by Mr. Verma and Mrs. Gupta with the intention of signing the sale agreement, unless there is evidence to the contrary.

Example 4:

Scenario: An online retailer, Flipkart, sends an invoice to a customer, Ms. Reddy, for a purchase she made. The invoice is a secure electronic record with a secure digital signature from Flipkart.

Application of Section 85B:

• Ms. Reddy disputes the amount charged in the invoice and takes the matter to court.
• Flipkart presents the secure electronic invoice as evidence.
• Under Section 85B(1), the court will presume that the secure electronic record (the invoice) has not been altered since it was issued, unless Ms. Reddy can prove otherwise.
• Additionally, under Section 85B(2)(a), the court will presume that the secure digital signature on the invoice was affixed by Flipkart with the intention of approving the electronic record, unless Ms. Reddy can provide evidence to the contrary.