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Corporate and Economic Laws · Laws and Regulations related to Cyber Security and Data Privacy

Intermediary Liability and Adjudication under the IT Act

Updated 11 October 2026 · Fact-checked

Under Section 79 of the IT Act, 2000, an intermediary is not liable for third party information it hosts, if it meets Section 79(2) (limited function or passive role, plus due diligence) and removes unlawful material on knowledge or notice. Contraventions go to an adjudicating officer (Section 46), then the Appellate Tribunal (Section 57) and the High Court (Section 62).

Understand Intermediary Liability and Adjudication Mechanism

An intermediary is a platform or service that carries or hosts content created by others, such as a social media site, web host or marketplace. Without protection, it could be blamed for every post a user uploads. Section 79 gives it a safe harbour: it is not liable for third party information, data or communication link made available or hosted by it.

The safe harbour is conditional. Section 79(2) lists three items, (a), (b) and (c). Items (a) and (b) are joined by "or". Under (a), the intermediary's function is limited to providing access to a communication system over which third party information is transmitted, temporarily stored or hosted. Under (b), it does not initiate the transmission, select the receiver, or select or modify the information. Item (c) is a separate due diligence condition: the intermediary must observe due diligence and any guidelines the Central Government prescribes.

Section 79(3) removes the protection in two cases. First, where the intermediary conspired, abetted, aided or induced the unlawful act, by threats, promise or otherwise. Second, where it gets actual knowledge, or is notified by the appropriate Government or its agency, that material on its computer resource is being used for an unlawful act, and it fails to expeditiously remove or disable access without vitiating the evidence.

Now the adjudication side. Under Section 46, the Central Government appoints an adjudicating officer, not below the rank of Director to the Government of India or an equivalent State officer, to decide whether a contravention has occurred that makes a person liable to penalty or compensation. Under Section 46(1A), the officer's jurisdiction covers claims for damage not exceeding ₹5 crore; above that, the competent court has jurisdiction. The officer must give the person a reasonable opportunity to make representation before imposing penalty or awarding compensation.

A person aggrieved by an order of the Controller or adjudicating officer appeals to the Appellate Tribunal (Section 57), and from the Tribunal to the High Court (Section 62). CERT-In's role is not covered in the supplied text, so learn it from your study material: it is the national agency for cyber security incident response.

Key rules to remember

Safe harbour (Section 79(1))
Intermediary not liable for third party information, data or communication link made available or hosted by it
Operates notwithstanding any other law, but only subject to sub-sections (2) and (3).
Conditions for safe harbour (Section 79(2))
(a) Limited function (access, transmission, temporary storage or hosting) OR (b) no initiating, no selecting receiver, no selecting or modifying information; plus (c) due diligence and prescribed guidelines
Section 79(2) lists (a), (b) and (c). Items (a) and (b) are joined by 'or'; (c) is a separate due diligence condition. Always mention due diligence in answers.
Loss of safe harbour (Section 79(3))
Conspiracy, abetment, aid or inducement; OR failure to expeditiously remove or disable access after actual knowledge or Government notification
Removal must be done without vitiating the evidence.
Adjudicating officer (Section 46)
Rank not below Director to Government of India (or equivalent State officer); claims for damage up to ₹5 crore under Section 46(1A)
Claims above ₹5 crore go to the competent court (Section 46(1A)). The officer has civil court powers under Section 46(5), being the powers conferred on the Appellate Tribunal by Section 58(2).
Appeal to Appellate Tribunal (Section 57)
Within 45 days of receiving the copy of the order; disposal endeavoured within 6 months
Delay can be condoned for sufficient cause. No appeal lies against an order made with the consent of the parties.
Appeal to High Court (Section 62)
Within 60 days of communication of Tribunal order; further period up to 60 days for sufficient cause
On any question of fact or law arising out of the order.

How to solve Intermediary Liability and Adjudication Mechanism questions

Use this method for any question on intermediary liability or the adjudication and appeal chain.

  1. 1Identify the party: is it an intermediary, and is the content third party information?
  2. 2Test Section 79(2): is its function limited to providing access or hosting (a), or does it not initiate, select the receiver, or select or modify the information (b)? Either (a) or (b) is enough. Then check (c): did it observe due diligence and the prescribed guidelines?
  3. 3Test Section 79(3): any conspiracy, abetment, aid or inducement? Any actual knowledge or Government notice, and did it remove or disable access expeditiously?
  4. 4Conclude clearly whether safe harbour is available or lost.
  5. 5For a dispute, identify the forum: adjudicating officer for claims up to ₹5 crore, competent court above that.
  6. 6State the appeal path and time limits: Tribunal in 45 days, High Court in 60 days, with the condonation provisos.
  7. 7Close with a one-line conclusion tied to the facts.

Quickest way: Passive, diligent, prompt

When to use it: For MCQs and short case scenarios on safe harbour.

  1. Ask: does (a) or (b) of Section 79(2) hold, and did it observe due diligence under (c)? If it selected or modified content, check whether (a) still applies; if not, protection is doubtful.
  2. Ask: did it know or get notified and still not remove it? If yes, protection is lost.
  3. For appeals, recall 45 days to the Tribunal and 60 days to the High Court.
  4. For monetary limit, recall ₹5 crore.

Common mistakes in Intermediary Liability and Adjudication Mechanism

  • Saying safe harbour is automatic for every intermediary.

    Students remember only Section 79(1).

    Fix: Always add that it is subject to Section 79(2) and (3), including due diligence.

  • Ignoring the requirement to remove material expeditiously after knowledge or notice.

    Focus stays on who posted the content.

    Fix: Quote Section 79(3)(b): failure to remove or disable access after actual knowledge or Government notification ends protection.

  • Mixing up time limits: 45 days, 60 days.

    The Data Protection Act appeal period is 60 days, and the IT Act Tribunal period is 45.

    Fix: IT Act: 45 days to the Tribunal (Section 57), 60 days to the High Court (Section 62). Under the DPDP Act, appeal to its Tribunal is within 60 days (Section 29).

  • Saying the adjudicating officer can decide any claim.

    The ₹5 crore limit is forgotten.

    Fix: Remember the officer decides claims up to ₹5 crore; above that, the competent court.

  • Allowing appeal against a consent order.

    Students assume every order is appealable.

    Fix: Section 57(2): no appeal lies against an adjudicating officer's order made with the consent of the parties.

Worked examples

Example 1

A video-hosting platform hosts user uploads and does not select or modify them. The Government agency notifies it that a particular video is being used to commit an unlawful act. The platform takes no action for several weeks. Is it protected under Section 79?

Show the solution
  1. The platform is an intermediary and the video is third party information.
  2. Its passive role satisfies Section 79(2)(b). Assuming it has observed due diligence under Section 79(2)(c), safe harbour applies in principle.
  3. Under Section 79(3)(b), on being notified by the appropriate Government or its agency, it must expeditiously remove or disable access without vitiating evidence.
  4. It did nothing for weeks, so it failed to act expeditiously.

Answer: The platform loses safe harbour under Section 79(3)(b) and can be held liable.

Example 2

An adjudicating officer imposes a penalty on X, who receives the order copy on 1 March. When must X appeal to the Appellate Tribunal, and where does a further appeal lie?

Show the solution
  1. Section 57(1) allows a person aggrieved by an order of the adjudicating officer to appeal to the Appellate Tribunal.
  2. Under Section 57(3), the appeal must be filed within 45 days from the date on which the copy of the order is received.
  3. Count 45 days from 1 March, leaving out the day of receipt. March has 31 days, so 1 March + 30 days = 31 March, and 15 more days gives 15 April. A leap year makes no difference, because February is not in this period.
  4. So the last day to file is 15 April. X may file on or before 15 April.
  5. The Tribunal may entertain a late appeal if sufficient cause is shown.
  6. Under Section 62, a further appeal lies to the High Court within 60 days of communication of the Tribunal's order, on a question of fact or law.

Answer: X must appeal within 45 days of receiving the order, that is on or before 15 April (the last day), unless delay is condoned. A further appeal lies to the High Court within 60 days.

Exam tips

  • Write Section 79(2) and (3) as short points, as case answers are marked on the conditions.
  • Always link facts to a condition: passive role, due diligence, knowledge or notice, removal.
  • Learn the numbers: ₹5 crore, 45 days, 60 days, six months.
  • Keep the IT Act appeal period separate from the DPDP Act's 60 days.
  • Do not give CERT-In details beyond what you know; state its role generally.

Practice questions from Laws and Regulations related to Cyber Security and Data Privacy

Intermediary Liability and Adjudication Mechanism in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Intermediary Liability and Adjudication Mechanism: frequently asked questions

What is safe harbour under Section 79 of the IT Act?

It is the protection that stops an intermediary being liable for third party information it hosts or makes available. It depends on meeting Section 79(2), which means a limited function or a passive role plus due diligence, and on prompt removal of unlawful material after knowledge or notice.

When does an intermediary lose safe harbour?

It loses it if it conspired, abetted, aided or induced the unlawful act. It also loses it if it fails to expeditiously remove or disable access after actual knowledge or Government notification.

What are the powers of an adjudicating officer under the IT Act?

The officer decides whether a contravention has occurred and may impose penalty or award compensation after giving a reasonable opportunity to be heard. Claims up to ₹5 crore fall within the jurisdiction. The officer has civil court powers under Section 46(5), being the powers conferred on the Appellate Tribunal by Section 58(2).

How do you appeal against an adjudicating officer's order?

Appeal to the Appellate Tribunal within 45 days of receiving the order. From the Tribunal, appeal to the High Court within 60 days. Both allow condonation of delay for sufficient cause.