Section 5 of ITA, 2000 : Section 5: Legal Recognition Of Electronic Signatures
The Information Technology Act, 2000
Bare Act
- CHAPTER III: ELECTRONIC GOVERNANCE
5. Legal recognition of electronic signatures - Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of electronic signature affixed in such manner as may be prescribed by the Central Government.
Explanation - For the purposes of this section, "signed", with its grammatical variations and cognate expressions, shall, with reference to a person, mean affixing of his handwritten signature or any mark on any document and the expression "signature" shall be construed accordingly.
Simplified Act
Simplified Explanation of Electronic Signature Legality:
When a law says you need to sign a document or validate information with your signature, you can use an electronic signature instead. This is just as good as using your handwritten signature, as long as it's done in the way the Central Government says it should be...
Explanation using Example
Let's consider a hypothetical scenario where a company called XYZ Ltd. is entering into a contract with another company, ABC Ltd. According to traditional laws, this contract would need to be signed by representatives from both companies to be considered legally binding. However, due to the provisions of Section 5 of The Information Technology Act, 2000, the requirement of a physical signature can be bypassed.
Suppose the representatives of both companies are in different cities and need to sign the contract immediately. They can use electronic signatures to authenticate the contract. This cou...