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

Vikram Exports Pvt Ltd's DSC was accepted by its authorised signatory, Mr. Sethi. The company is later wound up. The Certifying Authority (CA) intends to revoke the DSC. Which statement best reflects the Information Technology Act, 2000?

The CA may revoke the DSC because winding up of a company subscriber is a ground under Section 38(1)(c), but it must first give the subscriber an opportunity of being heard under Section 38(3) and then communicate the revocation to the subscriber.

  1. ARevocation is impossible because the DSC was accepted by the subscriber
  2. BThe CA may revoke on winding up of the company, but must still give the subscriber an opportunity of being heard under Section 38(3), and communicate the revocationCorrect
  3. CThe CA may revoke without any hearing since winding up is a ground under Section 38(1)
  4. DThe CA may only suspend the DSC, and only for up to fifteen days, since revocation requires a court order

Explanation

Section 38(1)(c) permits revocation on winding up of a company subscriber. Section 38(3) states a DSC shall not be revoked unless the subscriber has been given an opportunity of being heard, and 38(4) requires communication of the revocation to the subscriber. Acceptance does not bar revocation, and no court order is required.

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