Section 63 of ITA, 2000 : Section 63: Compounding Of Contraventions

The Information Technology Act, 2000

Bare Act

  • CHAPTER X: THE APPELLATE TRIBUNAL

(1) Any contravention under this Act may, either before or after the institution of adjudication proceedings, be compounded by the Controller or such other officer as may be specially authorised by him in this behalf or by the adjudicating officer, as the case may be, subject to such conditions as the Controller or such other officer or the adjudicating officer may specify: Provided that such sum shall not, in any case, exceed the maximum amount of the penalty which may be imposed under this Act for the contravention so compounded.

(2) Nothing in sub-section (1) shall apply to a person who commits the same or similar contravention within a period of three years from the date on which the first contravention, committed by him, was compounded. Explanation - For the purposes of this sub-section, any second or subsequent contravention committed after the expiry of a period of three years from the date on which the contravention was previously compounded shall be deemed to be a first contravention.

(3) Where any contravention has been compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the person guilty of such contravention in respect of the contravention so compounded.

Simplified Act

Simplified Explanation of Section 63 of The Information Technology Act, 2000

  1. Settling Offenses Outside of Court:

    If someone breaks the rules of this Act, they can settle the matter without going to court. This can be done either before or after legal actions have started. The settlement, known as compounding, can be done by the Controller or another officer authorized by him, or by the adjudicating officer. The settlement amount will be decided by these officers but cannot be more than the highest fine that can be imposed for the offense.

  2. Repeat Offenders:

    If a person commit...

Explanation using Example

Let's consider a hypothetical situation where a software company named XYZ Ltd. is found guilty of breaching data privacy norms under the Information Technology Act, 2000. The Controller or the adjudicating officer, under Section 63(1), can compound this contravention either before or after the adjudication proceedings have begun, imposing a fine not exceeding the maximum penalty for such a contravention.

However, if XYZ Ltd. commits a similar contravention within three years from the date of the first contravention, Section 63(2) states that the provision of compoundin...

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