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CS Professional · Banking and Insurance - Laws and Practice · Digital Banking

Meera Textiles Ltd obtained a Digital Signature Certificate (DSC) for its director, Mr. Rao. Mr. Rao uploaded the DSC to a public repository so that vendors could verify his signatures. Under Section 41 of the Information Technology Act, 2000, what is the legal effect of this act?

Mr. Rao is deemed to have accepted the DSC. Section 41(1) says a subscriber who publishes or authorises publication of the certificate to persons or in a repository is deemed to have accepted it, without needing separate written acceptance or any first transaction.

  1. AHe is deemed to have accepted the DSC by publishing it in a repositoryCorrect
  2. BHe is not deemed to have accepted it until the Certifying Authority revokes the earlier certificate
  3. CHe has accepted it only if he also sends a written acceptance to the Controller
  4. DHe has accepted it only after the first transaction is digitally signed

Explanation

Section 41(1) provides that a subscriber is deemed to have accepted a DSC if he publishes or authorises its publication to one or more persons or in a repository, or otherwise demonstrates approval in any manner. Mr. Rao published it in a repository, so acceptance is deemed. No written acceptance or first transaction is required.

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