Penalties Compensations And Adjudication ( Section 43 to 47 )

Section : 43. Penalty for damage to computer, computer system, etc.

If any person without permission of the owner or any other person who is incharge of a
computer, computer system or computer network, —
(a) accesses or secures access to such computer, computer system or computer network;
(b) downloads, copies or extracts any data, computer data base or information
from such computer, computer system or computer network including information or
data held or stored in any removable storage medium;
(c) introduces or causes to be introduced any computer contaminant or
computer virus into any computer, computer system or computer network;
(d) damages or causes to be damaged any computer, computer system or
computer network, data, computer data base or any other programmes residing in
such computer, computer system or computer network;
(e) disrupts or causes disruption of any computer, computer system or
computer network;
(f) denies or causes the denial of access to any person authorised to access any
computer, computer system or computer network by any means;
(g) provides any assistance to any person to facilitate access to a computer,
computer system or computer network in contravention of the provisions of this Act,
rules or regulations made there under;
(h) charges the services availed of by a person to the account of another person
by tampering with or manipulating any computer, computer system, or computer
network, he shall be liable to pay damages by way of compensation not exceeding one crore rupees to the person so affected.

Explanation.—For the purposes of this section,—
(i) "computer contaminant" means any set of computer instructions that are
designed—
(a) to modify, destroy, record, transmit data or programme residing
within a computer, computer system or computer network; or
(b) by any means to usurp the normal operation of the computer,
computer system, or computer network;
(ii) "computer data base" means a representation of information, knowledge, facts,
concepts or instructions in text, image, audio, video that are being prepared or have
been prepared in a formalised manner or have been produced by a computer,
computer system or computer network and are intended for use in a computer,
computer system or computer network;
(iii) "computer virus" means any computer instruction, information, data or
programme that destroys, damages, degrades or adversely affects the performance of
a computer resource or attaches itself to another computer resource and operates
when a programme, daia or instruction is executed or some other event takes place in
that computer resource;
(iv) "damage" means to destroy, alter, delete, add, modify or rearrange any computer
resource by any means.(v) " Computer Source code" means the listing of programmes, computer commands, design and layout and programme analysis of computer resource in any form.

Section : 43A. Compensation for failure to protect Data - Information Technology Act

Where a body corporate, possessing, dealing or handling any sensitive personal data or information in a computer resource which it owns, controls or operates, is negligent in implementing and maintaining reasonable security practices and procedures and thereby causes wrongful loss or wrongful gain to any person, such body corporate shall be liable to pay damages by way of compensation, to the person so affected.

Explanation: For the purposes of this section

(i) "body corporate" means any company and includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities.
(ii) "reasonable security practices and procedures" means security practices and procedures designed to protect such information from unauthorised access, damage, use, modification, disclosure or impairment, as may be specified in an agreement between the parties or as may be specified in any law for the time being in force and in the absence of such agreement or any law, such reasonable security practices and procedures, as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit.
(iii) "sensitive personal data or information" means such personal information as may be prescribed by the Central Government in consultation with such professional bodies or associations as it may deem fit.

Section : 44. Penalty for failure to furnish information return, etc.

If any person who is required under this Act or any rules or regulations made there under to—
(a) furnish any document, return or report to the Controller or ?he Certifying
Authority fails to furnish the same, he shall be liable to a penalty not exceeding one
lakh and fifty thousand rupees for each such failure;
(b) file any return or furnish any information, books or other documents within
the time specified therefor in the regulations fails to file return or furnish the same
within the time specified therefor in the regulations, he shall be liable to a penalty not
exceeding five thousand rupees for every day during which such failure continues;
(c) maintain books of account or records, fails to maintain the same, he shall
be liable to a penalty not exceeding ten thousand rupees for every day during which
the failure continues.

Section : 45. Residuary penalty.

Whoever contravenes any rules or regulations made under this Act, for .the
contravention of which no penalty has been separately provided, shall be liable to pay a
compensation not exceeding twenty-five thousand rupees to the person affected by such
contravention or a penalty not exceeding twenty-five thousand rupees.

Section : 46. Power to adjudicate.

(1) For the purpose of adjudging under this Chapter whether any person has
committed a contravention of any of the provisions of this Act or of any rule, regulation,
direction or order made thereunder the Central Government shall, subject to the
provisions of sub-section (3), appoint any officer not below the rank of a Director to the
Government of India or an equivalent officer of a State Government to be an adjudicating
officer 'for holding an inquiry in the manner prescribed by the Central Government.
(2) The adjudicating officer shall, after giving the person referred to in sub-section
(1) a reasonable opportunity for making representation in the matter and if, on such
inquiry, he is satisfied that the person has committed the contravention, he may impose
such penalty or award such compensation as he thinks fit in accordance with the provisions of that section.
(3) No person shall be appointed as an adjudicating officer unless he possesses such
experience in the field of Information Technology and legal or judicial experience as may
be prescribed by the Central Government.
(4) Where more than one adjudicating officers are appointed, the Central
Government shall specify by order the matters and places with respect to which such
officers shall exercise their jurisdiction.
(5) Every adjudicating officer shall have the powers of a civil court which are
conferred oh the Cyber Appellate Tribunal under sub-section (2) of section 58, and—
(a) all proceedings before it shall be deemed to be judicial proceedings within
the meaning of sections 193 and 228 of the Indian Penal Code;
(b) shall be deemed to be a civil court for the purposes of sections 345 and
346 of the Code of Criminal Procedure, 1973.

Section : 47. Factors to be taken into account by the adjudicating officer.

While adjudging the quantum of compensation under this Chapter, the adjudicating
officer shall have due regard to the following factors, namely:—
(a) the amount of gain of unfair advantage, wherever quantifiable, made as a
result of the default;
(b) the amount of loss caused to any person as a result of the default;

(c) the repetitive nature of the default

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