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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics and Law

After a negligent data leak, a body corporate pays compensation under Section 43A. Under Section 77 of the IT Act, 2000, what is the effect on other legal proceedings?

Compensation under Section 43A does not shield the body corporate from other consequences. Section 77 provides that no compensation, penalty or confiscation under the IT Act prevents the award of compensation or imposition of any other penalty or punishment under any other law in force.

  1. AThe payment bars any other penalty or punishment under any other law
  2. BThe payment is treated as a full settlement of all criminal liability
  3. CThe payment has no effect on the Central Government's rule-making powers only
  4. DIt does not prevent the award of compensation or imposition of any other penalty or punishment under any other law in forceCorrect

Explanation

Section 77 says no compensation awarded, penalty imposed or confiscation made under the Act prevents compensation or other penalty or punishment under any other law for the time being in force. So paying under Section 43A does not immunise the body corporate from other liability.

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