Blockchain technology has begun to disrupt almost every industry in the world. The importance of blockchain technology in many aspects of social and business life cannot be understated. Blockchain technology, which serves as the foundation for digital currencies like bitcoin as well as a range of other uses, has proliferated among professionals even outside of the IT sector. Data management, supply chain management, mobility services, banking and financial services sector, capital markets for trade settlement, the insurance industry for underwriting, healthcare and life sciences are just a few examples of Blockchain-based applications and initiatives. It has made a significant impact in the top legal industry which is relevant to how firms are serving clients as well as how law practices are run. Blockchain is storing and validating records of transactions to maintain an accurate chain of legitimate activities.
(a)WHAT IS BLOCKCHAIN TECHNOLOGY?
Blockchain Technology is a type of distributed ledger technology that records transactions by storing information of the sender and receiver of a digital coin or token, the amount or number involved in the transaction, and the transaction’s exact date and time[1]. It is a distributed network of servers where information is mirrored on all participating computers and verified through laborious calculations. To ensure security, blockchains make considerable use of cryptography. Blockchain is said to be more secure and resilient against hacking and other manipulations than other centralised servers. Blockchain Technology is successful mainly because it solves the problem of double spending, it replicates the digital copies of a digital coin and thus prevents its multiple uses. Blockchain can only be implemented where participants are controlling the major part of the computing system together as there is no single entity that has control over the whole system.
(b)EXISTING LEGAL FRAMEWORK
The legal and judicial frameworks have both benefitedfrom the application of Blockchain Technology. Smart contracts, corporate filings, criminal cases, dispute resolution, document notarizations, industry organisations, intellectual property rights, land registries and property deeds, law firm operations, and public service records have all been affected by blockchain technology in the legal domain.
In India, there is currently no legislation that regulates and keeps a check on blockchain technology and its numerous applications. However, the existing sector-specific regulators may have the authority to govern the use of blockchain-related technologies, depending on the many sectoral applications. The Securities Exchange Board of India[2] ("SEBI"), for example, regulates the use of blockchain technology in capital markets, while the Reserve Bank of India[3] ("RBI") regulates cryptocurrency, and the Insurance Regulatory and Development Authority of India[4] regulates insurance-related applications ("IRDAI"). The legal profession's use of technology has progressed through time.
Although the growth has been slow, there is no doubt that technological advancements in the legal industry have increased efficiency, decreased errors, and further made the procedures of the judicial system more comprehensible. It was during the unprecedented pandemic that the digitization of the legal industry took place for the first time. From paper filings to virtual court hearings, everything was welcomed by the legal sector despite limitations. It was the Supreme Court’s e-committee headed by Hon’ble Justice DY Chandrachud which made it possible. Our courts were able to continue operating even throughout the pandemic all because of the implementation of a contingency plan by the e-committee[5].
However, blockchain is one such technology that is yet to be fully utilised.
Estonia, China, the United Kingdom, Ghana, Ukraine, Canada, and Sweden, among others, have already incorporated blockchain into their legal systems. Combining the use of blockchain in the legal sector will give a boost to the current "e-justice" paradigm, which will not only decrease costs, time, and carbon footprints, but also ensure improved security, transparency, and authenticity, strengthening public trust in the judicial system.
(c)CRYPTOCURRENCY
(i)Is blockchain synonymous with cryptographic forms of money
Blockchain or distributed ledger technologies is synonymous with cryptographic forms of money, such as Ethereum and Bitcoin, yet digital currency is only one of a huge number of utilizations of blockchain innovation, and there are various enterprises, for example, monetary administrations and transportation, that will likewise profit by this developing innovation. The blockchain biological system attempts to manufacture a decentralized, disintermediated, and appropriated innovation[6]. This compatibility between the plan of the innovation, its endeavoured method of improvement, and its expressed objectives is the most grounded contention for paying attention to blockchain innovation. It clarifies why, regardless of the entirety of the potential traps, the assignment of evaluating the social, financial and political effect of the innovation ought to be taken up by specialists. Blockchain is an interesting test of how governments cope with emerging paradigms, as it is a challenge to traditional mindsets and systems across the board[7].
After the release of the original bitcoin white paper in the past 8 years, a new paradigm of decentralised computing has emerged that applies blockchain technology beyond currency and it has in fact not only revolutionised the technology industry but also the whole world. Like man-made brain power, blockchain technology also has the potential to alter parts of the financial or monetary industry for instance the fintech.One such zone is organized account where blockchain innovation can be used to lessen adjusting and detailing costs, make information the board efficiencies, and increment exchange straightforwardness all through the securitization procedure from resource start to optional market exchanging.
Blockchain’s key qualities present difficulties to the existing lawful and administrative system. It is included of carefully recorded information in “obstructs” or “blocks” that are connected together in sequential request in a way that makes the information hard to change once recorded, without the change of every single consequent square and agreement of a larger part of the system. Every node on the system by and large contains a total duplicate of the whole record, from the main square made—the beginning square—to the latest one.
Each square contains a hash (a fixed length alphanumeric string produced from a string of content) pointer as a connect to a past square, a timestamp, and exchange information. By its inclination, disseminated record innovation takes into consideration exchanges and information to be recorded and shared over a conveyed system of members without the requirement for a confided in middle person. The first example of blockchain (bitcoin) was to empower distributed exchanges without the prerequisite for, or cost of, a focal gathering or a central party. Blockchain also has various other characteristic features such as the transacted data is authenticated and visible and the data is protected from public view. One of its significant contribution that business industry can use to raise capital is known as Initial Coin Offering (ICOs).
(ii)Initial Coin Offerings
A strategy for fundraising and a hybrid between crowdfunding and the traditional issues of shares is known as Initial coin offering (ICOs).This method of raising funds by blockchain technology and cryptocurrency provides platform to increase the amount of capital through sale of cryptocurrencies such as Bitcoin or Ethereum in the form of tokens. Rather than raising this capital by issuing shares in their company, they issue pre-mined digital and transferrable protocol tokens (tokens).ICO’s have several significant advantages over traditional methods of fund raising and has the potential to transform business entities in capital raising in the financial markets. A second major difference to traditional fundraising mechanisms is that ICOs do not involve fiat currency.
The capital isn’t brought up in fiat cash, yet in advanced money, for example, Bitcoin. As a by-product of contributing, financial specialists don’t get legitimately perceived possession rights. Or maybe, they gain control rights over computerized tokens which are relied upon or vowed to have utility on the system being created. These are openly transferrable on auxiliary markets. The blockchain genuinely removes the need for intermediaries and enables funds to be securely transferred in a peer to peer manner.
The entity or person wishing to increase his capital or reserves and the person who is open to buy token or coin, which is a virtual cash or a cryptographic cash as an end result of computerized cash for instance bitcoin or ether or fiat currency. Such coins or tokens are kept on blockchain technology through smart contracts or splendid concession to a past blockchain. Start-ups are attracted to this new technology as it can bypass the time consuming and expensive process associated with a regulated offer to the public. The generation or production of white paper is during the procedure of issuing of ICOs on open gatherings and with a fundamental innovation and key terms overseeing the transaction of buying and selling of the tokens or coins. Sale of tokens is generally issued on a pre-announced date that permits the investors to purchase the token. Once the payment of token is completed the transaction is recorded on the smart contract.
Although ICOs have gained momentum in raising capital and has provided a favourable environment for many start-ups it has also emerged as a risk factor in protecting the rights of investors from scamsters who are exploiting with this technology. Hence the need for effective regulation with the implementation of this new technology is necessary.
(iii)Position of India on the legal status of Cryptocurrency
The Hon’ble Supreme Courtof India inInternet and Mobile Association of India v. Reserve Bank of India[8]has brought the attention of the legal sector to the distributed ledger technology that provided the fundamental foundation of Cryptocurrencies (bitcoin, dogecoin). The Court held that the RBI did have the necessary powers to regulate virtual currencies in its role to secure India’s economy. Banks and other financial institutions which are regulated by RBI are no longer prohibited from provisioning bank related services in relation to dealing of cryptocurrencies. This was derived as the RBI could not clearly tell the damages that the economy would face if cryptocurrency was not banned and therefore the Supreme Court declared restrictions to be unenforceable.
Meanwhile, The Department of Economic Affairs, Ministry of Finance has drafted the 'Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019' (“Draft Bill”). The term “deposit” has been defined in the Draft Bill to mean
QUOTE
the receipt of money, by way of advance or loan or in any other form, to be returned, whether after a specified period or otherwise, either in cash or in kind or in the form of a specified service, by any Deposit Taker, with or without any benefit in the form of interest, bonus, profit or in any other form
UNQUOTE
The Draft Bill intends to outlaw a wide variety of cryptocurrency-related activities in India. The bill highlights difficulties such as holding, selling, disposing of, or any type of cryptocurrency exchange. The specified prohibition only applies to dealing in cryptocurrencies; it does not apply to the usage of distributed ledger technology or the use of cryptocurrencies for research purposes. Under the Draft Bill, Mining, holding, selling, issuing, transferring, or using cryptocurrencies is punishable with a fine or imprisonment of up to 10 years, or both. As per the draft bill, the central government, in cooperation with the RBI, considers approving the digital rupee as legal money[9].
(iv)Treatment Of Coins As Security: Under The Indian Regime
Securities Law and Taxation Laws in India are growing ahead and are areas of concern for investors and shareholders. The need to reconsider the concept of cryptocurrencies arises here in order to prevent fraud and illegal activities. The trading on such digital currencies if legalised and regulated by an authority such scams and illegal trading will not occur in the market. Even though the Government of India has laid down several restrictions in order to prevent such trading the Securities Exchange Board of India (SEBI) along with the Reserve Bank of India (RBI) has issued several guidelines and is deliberating upon a regulatory regime to governing of such cryptocurrencies and ICOs. SEBI’s regulation may apply if the coins fall under the Securities Contract (Regulation) Act 1956 definition of “securities”.
The term “securities” mentioned in section 2 (h) is defined by SCRA as:
QUOTE
(i)shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
(a)derivative
(b)units or any other instrument issued by any collective investment scheme to the investors in such schemes;
(c)Security receipt as defined in clause (zg) of section 2 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
(d)Units or any other such instrument issued to the investors under any mutual fund scheme;
(ii)Government securities;
(iii)such other instruments as may be declared by the Central Government to be securities;
(iv)rights or interest in securities
UNQUOTE
The above definition states that there is an underlying asset in those instruments or securities. Although not all coin offerings are followed by an underlying asset, such asset coin gives the issuing entity a debt or equity claim.As per the definition they can fall under “other marketable securities”. One of the distinctive characteristic features of ‘securities’ is that it must be transferable as per the Supreme Court of India in the landmark case ofBhagwati Developers Pvt Ltd vs Peerless General Finance & Investment Co. Ltd[10]stated that marketable securities means it must be freely transferrable. It was alsoheld in the case ofSahara India Real Estate Corporation Ltd vs Securities and Exchange Board of India[11] wherein the Court held that a marketable security will clearly fall under the ambit of section 2(h)[12] of SCRA and that marketable means “capable of being sold” and “transferable”. Thus, SEBI can have jurisdiction over these coins offered through trading of ICOs.
The definition “securities”[13] as per the Securities Contract (Regulation) Act 1956 is not inclusive when compared to the definition of the United States. This shows the legal backdrop in the legislation. As per the definition of the United States law securities is defined as an“investment in a common venture premised on a reasonable expectation of profits to be derived from entrepreneurial or managerial efforts of others”(SEC vs W.J. Howey Co)[14]. The definition of “person” also includes unincorporated organisation under section 2[15] of Securities Act, 1933. Thus, securities can also be issued by unincorporated entities in the United States. The United States Securities Exchange Commission also recognises the concept of DAO. DAO refers to Decentralized Autonomous Organisation is an organisation borne out of encoded computer rules that is transparent controlled by shareholders and executed on a blockchain protocol. India could also implement such concepts as currently the concept of DAO does not fall under the definition of securities as it does not recognise the issue of tokens by unincorporated entities.
The French Government in April 2016 passed an order regulating ‘mini bonds’ a type of corporate debt facilitating crowdfunding. This order explicitly allows mini bonds to be issued and transferred using the blockchain, despite certain adapted procedures and safeguards.Also, the U.K. government in February 2017, granted the blockchain-based finance start-upTramonex a small Electronic Money Institution (EMI) registration.
The registration of EMI is for people who issue “electronic money” and such value is computerized and stored electronically. These various approaches from the U.K and French governments can also be looked into and adapted as a form of guidelines in order to ensure protection and safeguard from financial terrorism and to protect the interest of both the investor and the seller during the online transaction of the digital currencies. In India currently there is no law or regulation to regulate blockchain technology. A committee was setup in April 2017, Ministry of Finance, to be chaired by the Special Secretary (Economic Affairs) and representatives from various Central government departments, to examine the regulation of virtual currencies. Nevertheless, the formation of this committee was also not helpful as the government has still not yet enacted legislations governing blockchain technology.
(d)COMPETITION LAW AND BLOCKCHAIN
While most of these interactions have been repeatedly discussed, the one between blockchain and competition law is relatively nascent with a dearth of judicial precedents[16]. The adoption of this technology raises several prominent concerns, relating to the application of various aspects of Competition law.
First and foremost, the qualification of a blockchain as an ‘enterprise’ under the Competition Act, 2002 (“Competition Act”) is crucial for the assessment of various anti-competitive practices. Notably, an enterprise is defined by the Competition Act as “a person or a department of the government which is engaged in any activity….”[17]. The CCI has interpreted the term to include any entity which is engaged in any specified economic and commercial activity[18].In this context, a blockchain can be termed as an enterprise based on two grounds. Firstly, the definition of ‘persons’ which includes “individuals, artificial juridical persons or an association of persons or a body of individuals, whether incorporated in India or outside India,”[19]would naturally encompass blockchains and their participants. Secondly, a blockchain is involved in theprovision of services[20]with the use of distributed ledger system thereby falling within the ambit of the act as it encompasses services of any description provided to the user[21]. Conclusively, a blockchain can reasonably be termed as an enterprise and is amenable to several provisions of the Act.
Further, the question as to whether or not the participation in blockchain can be construed as an agreement is fundamental to the applicability of the Act to blockchains in light of Section 3[22]. This provision purports to prohibit the conclusion of anti-competitive agreements between various entities[23].The Act provides a rather wide definition of ‘agreement’ to includeany arrangement or understanding or action in concertirrespective of it being formal or in writing; enforceable or not[24]. As the definition is wide enough to “cover situations where the parties act on the basis of a nod or a wink,”[25]it evidentially encompasses blockchain within its ambit. This is primarily because various participants of the blockchain in fact act in concert or agreement through the use of a consensus mechanism to maintain or modify the status of the ledger, which is instrumental to the functioning of a blockchain.Consequentially, this modus operandi of blockchains enables the various nodes to facilitate anti-competitive practices by the use of mutual consent, thereby meeting the requirements of an ‘agreement’ under the Competition Act.
Another pertinent question surrounding the applicability of the legal regime to blockchains is that of jurisdiction. Blockchains generally extend across various countries and work in a global network, while the participants maintain an anonymous nature of their identity.This comes off as a setback for regulatory authorities as it would be onerous to ascertain which authority would exercise jurisdiction and more importantly, over whom. Although the CCI is empowered to exercise jurisdiction over global blockchains in cases where an appreciable adverse effect is cast on competition in the relevant market in India[26], its application will be a practical impediment to say the least.
The present framework of competition law, along with the introduction of blockchain, creates a plethora of issues in which blockchain's operation may conflict with the competition laws. For Example, consortiums on blockchain may make price-fixing (as provided in Sections 3[27] and 4[28] of the Competition Act, 2002) considerably easier among competitors in a relevant industry because of the privacy provided by Blockchain. Furthermore, the concept of 'gating,' in which a new entrant's access to a blockchain network can be restricted, could result in market foreclosure. The above-mentioned are only a few of the numerous potential issues that could emerge with Competition law and blockchain technology.
(e)Legal Validity of Smart Contracts
As defined by one of India’s most desirable employers (RBI), Smart contracts are lines of code on Blockchain technology that execute themselves after meeting the predetermined conditions. What makes them ‘smart’, is their ability to function on regulatory compliance along with the execution of predetermined commands. There is no space for human error as every party checks the stage at which the agreement is operating and whether it is honoured properly or not. All of the steps and procedures are recorded, processed, and carried out at the same time by all of the systems.
Smart contracts are a profitable choice for firms that deal with and share sensitive data, such as franchise agreements. The data in smart contracts is encrypted using cryptography, and the distributed ledger system's functionality ensures data security. There are, however, some drawbacks.
Smart contracts cannot be amended, so a new contract has to be entered into each time the parties come to a new contractual obligation. As a result, traditional contracts may still be advantageous in firms that need to operate with a lot of flexibility. The parties in an agreement will have to depend on technical experts who can capture the contents of an agreement in a computer code. It can be a challenge for lawyers who are not well versed with information technology as they might not be able to decipher a software code that forms a basic Smart Contract[29].
Section 10[30] of the Indian Contract Act, 1872 ("ICA"). defines elements of a valid contract, which must be fulfilled by a smart contract in India in order to be valid and enforceable. While the ICA only regulates physical contracts, validity of contracts formed through electronic means can be drawn from Section 10-A[31] of the Information Technology Act, 2000 ("IT Act"). After providing detailed recommendations, the government may issue a directive to support smart contracting. Smart Contracts are legal instruments; however, additional clarity can be gained after the legislature takes appropriate measures to define and codify them.
Electronic Contracting, Data Privacy and Cybersecurity
The IT Act allows digital signatures to be used to authenticate documents. According to theInformation Technology Act, 2000,digital signatures mean authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of Section 3[32]. Further, the IT Act, 2000 deals with digital signatures under Sections 2(1)(p)[33], and 15[34]. The IT Act comprises laws governing certifying agencies' authority, procedures for granting licences, and responsibilities. For authentication and limited access, smart contracts use digital signatures. Despite the above-mentioned method of employing self-generating digital signatures, the IT Act does not clearly ban the use of self-generating digital signatures via blockchain technology. However, because there is no option for express recognition of the same, any contract created with blockchain technology that requires a signature to authenticate, is effectively invalidated[35].While there is no law mandating blockchain networks to safeguard data privacy and security, they may nonetheless be required to follow the general principles and laws governing cyber security and privacy in India. Due to the fundamentaldecentralisation of blockchains, challenges with enforcement are expected to arise[36].
Blockchain and Intellectual Property Rights
The most effective use of blockchain technology is to establish contracts managing intellectual property licences. Effectively, blockchain technology may provide a record that shows true ownership, the authorised licensee, and other supply chain participants such as consumers and customs authorities. In the intellectual property arena, the use of blockchain technology may aid in verifying a real product and identifying it from fake as they may record verifiable details about when and where things have been created, as well as specifics about their manufacturing processes and raw material sources, blockchain-based ledgers that store IP rights information enable for source authentication. Over a global blockchain network that defies territorial jurisdictions, the enforceability of members' intellectual property rights remains a concern.
Blockchain as Intellectual Property
A blockchain-based technology may be awarded protection under the Patents Act 1970 and Copyright Act, 1957. In order to be registered as a patent, the technology has to conform to the tests laid down under the said legislation (i.e.,its patentability, novelty, inventive step and industrial application).However, according to Section 3[37] of the Patents Act of 1970, which prohibits 'a mathematical or business process or a computer programme per se or algorithms,' registration of a blockchain as a patent may be challenging under Ss. 2(1)(ac)[38], 2(1)(ja)[39], 2(l)[40], 3[41] and 4[42] of the Patents Act, 1970.
Comparatively, it would be easier for a blockchain to avail protection by way of copyright as it purports to be a computer programme, thereby qualifying it for protection under Section 13[43] of the Copyright Act, 1957.
Enforcement and Judicial Issues
The integration of blockchain technology also presents the problem of the jurisdiction in the event of a disagreement over a transaction, given that the validation procedure may be performed by a node in a different jurisdiction. Nodes are basically participants of a blockchain network who are connected to it via different computer/electronic software. The location of nodes or the subject matter of transactions may be critical in deciding a court's jurisdiction over a blockchain dispute and the enforcement of any judgement rendered. It is possible to create a secure and safe digital environment for consistent, rapid, and economically practical document exchange across various agencies by unifying and synthesising all parties in litigation, i.e. lawyers, experts, investigative agencies, and so on, on a single blockchain platform. This will also ensure that the information accessed on the blockchain network is guaranteed safe and unchangeable, as the miners will be responsible for determining the dependability of these blocks of data (i.e. participants who validate the authenticity of new blocks). This will save the court a significant amount of time, allowing them to focus only on the adjudication of the case rather than those minor concerns that currently consume a lot of time.
Section 65B[44] (Admissibility of electronic records) of the Indian Evidence Act, 1872, may be crucial for the purposes of enforcement and jurisdiction regarding transactions through a blockchain network in India. Since the records are stored on the blockchain network. Section 65B[45] governs their admissibility as electronic evidence in courts of law. This section states that any record created by a computer is admissible as evidence without further proof or the production of the original, subject to the limitations set forth in the subsection of section 65B[46].
Land Transfer and Reforms
Several states have begun investigating the potential of using blockchain technology in the land registration and record-keeping process. This technology allows state governments to alter the land registration process completely, allowing them to process and preserve information like a chain of title and land use, which was previously a complex procedure to undertake.The registration process formalises the parties’ agreement about the transfer of property. Furthermore, using blockchain to transfer property would make the entire procedure much faster than the current 3 to 4 months wait time. The buyer may readily verify the property title, preventing the seller from participating in unethical acts such as selling the same property a second time.
Rajasthan, one of the most popular tourist destinations in India aims to digitize land titles. Blockchainimplementationfordigitisinglandrecordshasbecomesuitable due to the applicability of the Rajasthan Urban Land (Certification of Titles) Act, 2016 ("Rajasthan Act").
According to the Rajasthan Act, the state government will act as a guarantor for land titles in the state and will pay those who are harmed if defective titles are issued. The assurance is derived from a certificate given by the Urban Land Title Certification Authority upon verification of the property's ownership.
Blockchain and Online Dispute Resolution (ODR)
Commercial arbitration is the favourite approach of big economic entities since it is cost-effective, unbiased, and has a high level of confidentiality. However, with the introduction of multiple blockchain-based ODR platforms that offer low-cost resolution services to parties in various cross-border international disputes, blockchain technology is slowly infiltrating the traditional dispute resolution industry. Blockchain ODR has the ability to assist small and medium-sized businesses in resolving disputes at a lesser cost. With several jurisdictions adopting the blockchain ODR model these days, it is reasonable to believe that future courts could have a higher chance of resolving commercial disputes in a cost-effective manner.
Conclusion
Although blockchain technology has a bright future in the field of tech-based development, certain unique features of the technology may make it challenging for legal enforcement purposes. Legal Counsel or judges that are tech proficient are still in minority.
The technology is still in its development phase, and lawmakers still ought to address a number of legal and practical obstacles, such as faults in coding and lack of cryptographic knowledge, among others. While this may be true in terms of legal enforcement, it must not be overlooked that blockchain technology has introduced a simple, yet powerful system based on anonymous users' trust and cryptography. In this age of digital technology, a careful and precise legislative framework for implementing this technology will, in time, increase efficiency by decreasing errors and broadening access to legal courses.
[1] Legal Tech: How Blockchain Can Easily Transform The Legal Profession;
https://www.abclegal.com/blog/legal-tech-blockchain
[2] Securities and Exchange Board of India was established in the year 1988 and subsequently was given the constitutional validity on 30th January 1992 by Government of India bypassing the SEBI Act, 1992
[3] The Reserve Bank of India was established]following the Reserve Bank of India Act of 1934. Though privately owned initially, it was nationalised in 1949 and since then fully owned by theMinistry of Finance,Government of India(GoI).
[4] TheInsurance Regulatory and Development Authority of India(IRDAI) is aregulatory bodyunder thejurisdictionofMinistry of Finance,Government of Indiaand is tasked withregulatingandlicensingtheinsuranceandre-insuranceindustries in India. It was constituted by the Insurance Regulatory and Development Authority Act, 1999, an Actof Parliamentpassed by theGovernment of India.
[5] Editorial, Filing of cases in SC will undergo radical change: Justice DY Chandrachud, Hindustan Times, May 3rd 2020
[6] Miren B Aparicio, “Big Data: Mitigating Financial Crime Risk”, Atlantic Council (2017).
[7] Tanvi Ratna, ‘Blockchain Regulation in the United States: Evaluating the overall approach to virtual asset regulation’, New America (2019)
[8] Internet and Mobile Association of India v. Reserve Bank of India, 2020 SCC Online SC 275
[9] Draft Banning of Cryptocurrency & Regulation of Official Digital Currency Bill, 2019,
https://prsindia.org/billtrack/draft-banning-of-cryptocurrency-regulation-of-official-digital-currency-bill-2019
[10] (2013) 9 SCC 584
[11] (2012) 10 SCC 603
[12] shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
(a)derivative
(b)units or any other instrument issued by any collective investment scheme to the investors in such schemes;
(c)Security receipt as defined in clause (zg) of section 2 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
(d)Units or any other such instrument issued to the investors under any mutual fund scheme;
(i)Government securities;
(ii)such other instruments as may be declared by the Central Government to be securities;
(iii)rights or interest in securities
[13] Supra N 12
[14] 328 U.S. 293, 301 (1946)
[15] The term “person” means an individual, a corporation, a partnership, an association, a joint-stock company, atrust,any unincorporated organization, or a government or political subdivision thereof. As used in this paragraph the term“trust”shall include only atrustwhere the interest or interests of the beneficiary or beneficiaries are evidenced by asecurity.
[16] United American Corp. v. Bitmain Inc. et al, Case no. 1:2018cv25106;Gallagher v. Bitcointalk.org,Case no.3:18-cv-05892
[17] “enterprise” means a person or a department of the Government, who or which is, or has been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition or control of articles or goods, or the provision of services, of any kind, or in investment, or in the business of acquiring, holding, underwriting or dealing with shares, debentures or other securities of any other body corporate, either directly or through one or more of its units or divisions or subsidiaries, whether such unit or division or subsidiary is located at the same place where the enterprise is located or at a different place or at different places, but does not include any activity of the Government relatable to the sovereign functions of the Government including all activities carried on by the departments of the Central Government dealing with atomic energy, currency, defence and space. Explanation .—For the purposes of this clause,—
(a)“activity” includes profession or occupation;
(b)“article” includes a new article and “service” includes a new service;
(c)“unit” or “division”, in relation to an enterprise, includes—
(i)a plant or factory established for the production, storage, supply, distribution, acquisition or control of any article or goods;
(ii)any branch or office established for the provision of any service;
[18] In Re: Dilip Modwil and Insurance Regulatory and Development Authority, Case No. 39 of 2014; In re: Shri Shubham Srivastava and Department of Industrial Policy and Promotion, Case No. 39 of 2013.
[19] Section 2 (l), Competition Act, 2002 -
“person” includes—
(i)an individual;
(ii)a Hindu undivided family;
(iii)a company;
(iv)a firm;
(v)an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
(vi)any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956);
(vii)any body corporate incorporated by or under the laws of a country outside India;
(viii)a co-operative society registered under any law relating to co-operative societies;
(ix)a local authority;
(x)every artificial juridical person, not falling within any of the preceding sub-clauses;
[20] Section 2(h), Competition Act, 2002
[21] Section 2(u), Competition Act, 2002 -
“service” means service of any description which is made available to potential users and includes the provision of services in connection with business of any industrial or commercial matters such as banking, communication, education, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusem*nt, construction, repair, conveying of news or information and advertising;
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[22] Anti-competitive agreements.—
(1)No enterprise or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India.
(2)Any agreement entered into in contravention of the provisions contained in sub-section (1) shall be void.
(3)Any agreement entered into between enterprises or associations of enterprises or persons or associations of persons or between any person and enterprise or practice carried on, or decision taken by, any association of enterprises or association of persons, including cartels, engaged in identical or similar trade of goods or provision of services, which—
(a)directly or indirectly determines purchase or sale prices;
(b)limits or controls production, supply, markets, technical development, investment or provision of services;
(c)shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way;
(d)directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition: Provided that nothing contained in this sub-section shall apply to any agreement entered into by way of joint ventures if such agreement increases efficiency in production, supply, distribution, storage, acquisition or control of goods or provision of services. Explanation.—For the purposes of this sub-section, "bid rigging" means any agreement, between enterprises or persons referred to in sub-section (3) engaged in identical or similar production or trading of goods or provision of services, which has the effect of eliminating or reducing competition for bids or adversely affecting or manipulating the process for bidding.
(4)Any agreement amongst enterprises or persons at different stages or levels of the production chain in different markets, in respect of production, supply, distribution, storage, sale or price of, or trade in goods or provision of services, including—
(a)tie-in arrangement;
(b)exclusive supply agreement;
(c)exclusive distribution agreement;
(d)refusal to deal;
(e)resale price maintenance, shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely to cause an appreciable adverse effect on competition in India. Explanation.—For the purposes of this sub-section,—
(a)“tie-in arrangements” includes any agreement requiring a purchaser of goods, as a condition of such purchase, to purchase some other goods;
(b)“exclusive supply agreement” includes any agreement restricting in any manner the purchaser in the course of his trade from acquiring or otherwise dealing in any goods other than those of the seller or any other person;
(c)“exclusive distribution agreement” includes any agreement to limit, restrict or withhold the output or supply of any goods or allocate any area or market for the disposal or sale of the goods;
(d)“refusal to deal” includes any agreement which restricts, or is likely to restrict, by any method the persons or classes of persons to whom goods are sold or from whom goods are bought;
(e)“resale price maintenance” includes any agreement to sell goods on condition that the prices to be charged on the resale by the purchaser shall be the prices stipulated by the seller unless it is clearly stated that prices lower than those prices may be charged.
(5)Nothing contained in this section shall restrict—
(i)the right of any person to restrain any infringement of, or to impose reasonable conditions, as may be necessary for protecting any of his rights which have been or may be conferred upon him under:
(a)the Copyright Act, 1957 (14 of 1957);
(b)the Patents Act, 1970 (39 of 1970);
(c)the Trade and Merchandise Marks Act, 1958 (43 of 1958) or the Trade Marks Act, 1999 (47 of 1999);
(d)the Geographical Indications of Goods (Registration and Protection) Act, 1999 (48 of 1999);
(e)the Designs Act, 2000 (16 of 2000);
(f)the Semi-conductor Integrated Circuits Layout-Design Act, 2000 (37 of 2000);
(ii)the right of any person to export goods from India to the extent to which the agreement relates exclusively to the production, supply, distribution or control of goods or provision of services for such export.
[23] Section 3, Competition Act, 2002.
[24] Section 2(b), Competition Act, 2002 -
agreement” includes any arrangement or understanding or action in concert,—
(i)whether or not, such arrangement, understanding or action is formal or in writing; or
(ii)whether or not such arrangement, understanding or action is intended to be enforceable by legal proceedings;
[25] Builders Association of India v. Cement Association of India and Ors., Case No. 29 of 2010
[26] Section 32, Competition Act, 2002 -
Acts taking place outside India but having an effect on competition in India.—The Commission shall, notwithstanding that,—
(a)an agreement referred to in section 3 has been entered into outside India; or
(b)any party to such agreement is outside India; or
(c)any enterprise abusing the dominant position is outside India; or
(d)a combination has taken place outside India; or
(e)any party to combination is outside India; or"
(f)any other matter or practice or action arising out of such agreement or dominant position or combination is outside India, have power to inquire into such agreement or abuse of dominant position or combination if such agreement or dominant position or combination has, or is likely to have, an appreciable adverse effect on competition in the relevant market in India.
[27] Anti-competitive agreements. —
(1)No enterprise or association of enterprises or person or association of persons shall enter into any agreement in respect of production, supply, distribution, storage, acquisition or control of goods or provision of services, which causes or is likely to cause an appreciable adverse effect on competition within India.
(2)Any agreement entered into in contravention of the provisions contained in sub-section (1) shall be void.
(3)Any agreement entered into between enterprises or associations of enterprises or persons or associations of persons or between any person and enterprise or practice carried on, or decision taken by, any association of enterprises or association of persons, including cartels, engaged in identical or similar trade of goods or provision of services, which—
(a)directly or indirectly determines purchase or sale prices;
(b)limits or controls production, supply, markets, technical development, investment or provision of services;
(c)shares the market or source of production or provision of services by way of allocation of geographical area of market, or type of goods or services, or number of customers in the market or any other similar way;
(d)directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have an appreciable adverse effect on competition: Provided that nothing contained in this sub-section shall apply to any agreement entered into by way of joint ventures if such agreement increases efficiency in production, supply, distribution, storage, acquisition or control of goods or provision of services. Explanation.—For the purposes of this sub-section, "bid rigging" means any agreement, between enterprises or persons referred to in sub-section (3) engaged in identical or similar production or trading of goods or provision of services, which has the effect of eliminating or reducing competition for bids or adversely affecting or manipulating the process for bidding.
(4)Any agreement amongst enterprises or persons at different stages or levels of the production chain in different markets, in respect of production, supply, distribution, storage, sale or price of, or trade in goods or provision of services, including—
(a)tie-in arrangement;
(b)exclusive supply agreement;
(c)exclusive distribution agreement;
(d)refusal to deal;
(e)resale price maintenance, shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely to cause an appreciable adverse effect on competition in India. Explanation.—For the purposes of this sub-section,—
(a)“tie-in arrangements” includes any agreement requiring a purchaser of goods, as a condition of such purchase, to purchase some other goods;
(b)“exclusive supply agreement” includes any agreement restricting in any manner the purchaser in the course of his trade from acquiring or otherwise dealing in any goods other than those of the seller or any other person;
(c)“exclusive distribution agreement” includes any agreement to limit, restrict or withhold the output or supply of any goods or allocate any area or market for the disposal or sale of the goods;
(d)“refusal to deal” includes any agreement which restricts, or is likely to restrict, by any method the persons or classes of persons to whom goods are sold or from whom goods are bought;
(e)“resale price maintenance” includes any agreement to sell goods on condition that the prices to be charged on the resale by the purchaser shall be the prices stipulated by the seller unless it is clearly stated that prices lower than those prices may be charged.
(5)Nothing contained in this section shall restrict—
(i)the right of any person to restrain any infringement of, or to impose reasonable conditions, as may be necessary for protecting any of his rights which have been or may be conferred upon him under:
(a)the Copyright Act, 1957 (14 of 1957);
(b)the Patents Act, 1970 (39 of 1970);
(c)the Trade and Merchandise Marks Act, 1958 (43 of 1958) or the Trade Marks Act, 1999 (47 of 1999);
(d)the Geographical Indications of Goods (Registration and Protection) Act, 1999 (48 of 1999);
(e)the Designs Act, 2000 (16 of 2000);
(f)the Semi-conductor Integrated Circuits Layout-Design Act, 2000 (37 of 2000);
(ii)the right of any person to export goods from India to the extent to which the agreement relates exclusively to the production, supply, distribution or control of goods or provision of services for such export.
[28] Abuse of dominant position.—
(2)No enterprise shall abuse its dominant position.
(3)There shall be an abuse of dominant position under sub-section (1), if an enterprise,—
(a)directly or indirectly, imposes unfair or discriminatory—
(i)condition in purchase or sale of goods or services; or
(ii)price in purchase or sale (including predatory price) of goods or service; or Explanation.—For the purposes of this clause, the unfair or discriminatory condition in purchase or sale of goods or services referred to in sub-clause (i) and unfair or discriminatory price in purchase or sale of goods (including predatory price) or service referred to in sub-clause (ii) shall not include such discriminatory conditions or prices which may be adopted to meet the competition; or
(b)limits or restricts—
(i)production of goods or provision of services or market therefor; or
(ii)technical or scientific development relating to goods or services to the prejudice of consumers; or
(c)indulges in practice or practices resulting in denial of market access; or
(d)makes conclusion of contracts subject to acceptance by other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts; or
(e)uses its dominant position in one relevant market to enter into, or protect, other relevant market. Explanation .—For the purposes of this section, the expression—
(a)“dominant position” means a position of strength, enjoyed by an enterprise, in the relevant market, in India, which enables it to—
(ii)operate independently of competitive forces prevailing in the relevant market; or
(iii)affect its competitors or consumers or the relevant market in its favour;
(b)“predatory price” means the sale of goods or provision of services, at a price which is below the cost, as may be determined by regulations, of production of the goods or provision of services, with a view to reduce competition or eliminate the competitors.
[29] Blockchain: Legal implications, questions, opportunities and risks;
https://www2.deloitte.com/global/en/pages/legal/articles/2018-legal-blockchain.html
[30] What agreements are contracts
All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
Nothing herein contained shall effect any law in force in India and not hereby expressly repealed by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.
[31] Validity of contracts formed through electronic means. -Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form or by means of an electronic record, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose.
[32] Authentication of electronic records.-
(1)Subject to the provisions of this section, any subscriber may authenticate an electronic record by affixing his digital signature.
(2)The authentication of the electronic record shall be effected by the use of asymmetric crypto system and hash function which envelop and transform the initial electronic record into another electronic record. Explanation.-For the purposes of this sub-section, "hash function" means an algorithm mapping or translation of one sequence of bits into another, generally smaller, set known as "hash result" such that an electronic record yields the same hash result every time the algorithm is executed with the same electronic record as its input making it computationally infeasible-
(a)to derive or reconstruct the original electronic record from the hash result produced by the algorithm;
(b)that two electronic records can produce the same hash result using the algorithm.
(c)Any person by the use of a public key of the subscriber can verify the electronic record.
(d)The private key and the public key are unique to the subscriber and constitute a functioning key pair.
[33] "digital signature" means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3
[34] Secure electronic signature. -An electronic signature shall be deemed to be a secure electronic signature if-
(i)the signature creation data, at the time of affixing signature, was under the exclusive control of signatory and no other person; and
(ii)the signature creation data was stored and affixed in such exclusive manner as may be prescribed. Explanation. -In case of digital signature, the "signature creation data" means the private key of the subscriber.]
"15. Secure digital signature. -If, by application of a security procedure agreed to by the parties concerned, it can be verified that a digital signature, at the time it was affixed, was-
(a)unique to the subscriber affixing it;
(b)capable of identifying such subscriber;
(c)created in a manner or using a means under the exclusive control of the subscriber and is linked to the electronic record to which it relates in such a manner that if the electronic record was altered the digital signature would be invalidated, then such digital signature shall be deemed to be a secure digital signature."
[35] Rachit Bahl,India: Data Protection and Cyber Security, (May 13, 2019), LEGAL 500. https://www.azbpartners.com/bank/india-data-protection-cyber-security/
[36] Section 5 in The Information Technology Act, 200 - Legal recognition ofelectronic signature
Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document shall be signed or bear the signature of any person, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means ofelectronic signature affixed in such manner as may be prescribed by the Central Government. Explanation.- For the purposes of this section, "signed", with its grammatical variations and cognate expressions, shall, with reference to a person, mean affixing of his hand written signature or any mark on any document and the expression "signature" shall be construed accordingly
[37] What are not inventions. -The following are not inventions within the meaning of this Act,-
(a)an invention which is frivolous or which claims anything obviously contrary to well established natural laws;
(b)an invention the primary or intended use or commercial exploitation of which could be contrary public order or morality or which causes serious prejudice to human, animal or plant life or health or to the environment;]
(c)the mere discovery of a scientific principle or the formulation of an abstract theoryor discovery of any living thing or non-living substances occurring in nature;
(d)the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant. Explanation. -For the purposes of this clause, salts, esters, ethers, polymorphs, metabolites, pure form, particle size, isomers, mixtures of isomers, complexes, combinations and other derivatives of known substance shall be considered to be the same substance, unless they differ significantly in properties with regard to efficacy;
(e)a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof or a process for producing such substance;
(f)the mere arrangement or re-arrangement or duplication of known devices each functioning independently of one another in a known way;
(g)....
(h)a method of agriculture or horticulture;
(i)any process for the medicinal, surgical, curative, prophylactic23[diagnostic, therapeutic] or other treatment of human beings or any process for a similar treatment of animals24[***] to render them free of disease or to increase their economic value or that of their products.
(j)plants and animals in whole or any part thereof other than micro-organisms but including seeds, varieties and species and essentially biological processes for production or propagation of plants and animals;
(k)a mathematical or business method or a computer programe per se or algorithms;
(l)a literary, dramatic, musical or artistic work or any other aesthetic creation whatsoever including cinematographic works and television productions;
(m)a mere scheme or rule or method of performing mental act or method of playing game;
(n)a presentation of information;
(o)topography of integrated circuits;
(p)an invention which in effect, is traditional knowledge or which is an aggregation or duplication of known properties of traditionally known component or components.
[38] "capable of industrial application", in relation to an invention, means that the invention is capable of being made or used in an industry
[39] "inventive step" means a feature of an invention that involves technical advance as compared to the existing knowledge or having economic significance or both and that makes the invention not obvious to a person skilled in the art
[40] "new invention" means any invention or technology which has not been anticipated by publication in any document or used in the country or elsewhere in the world before the date of filing of patent application with complete specification, i.e., the subject matter has not fallen in public domain or that it does not form part of the state of the art
[41] What are not inventions. -The following are not inventions within the meaning of this Act,-
(a)an invention which is frivolous or which claims anything obviously contrary to well established natural laws;
(b) an invention the primary or intended use or commercial exploitation of which could be contrary public order or morality or which causes serious prejudice to human, animal or plant life or health or to the environment;
(c)the mere discovery of a scientific principle or the formulation of an abstract theoryor discovery of any living thing or non-living substances occurring in nature
(d) the mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance or the mere discovery of any new property or new use for a known substance or of the mere use of a known process, machine or apparatus unless such known process results in a new product or employs at least one new reactant. Explanation. -For the purposes of this clause, salts, esters, ethers, polymorphs, metabolites, pure form, particle size, isomers, mixtures of isomers, complexes, combinations and other derivatives of known substance shall be considered to be the same substance, unless they differ significantly in properties with regard to efficacy;
(e)a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof or a process for producing such substance;
(f)the mere arrangement or re-arrangement or duplication of known devices each functioning independently of one another in a known way;22
(g)[***]
(h) a method of agriculture or horticulture;
(i)any process for the medicinal, surgical, curative, prophylactic23[diagnostic, therapeutic] or other treatment of human beings or any process for a similar treatment of animals24[***] to render them free of disease or to increase their economic value or that of their products.
(j)plants and animals in whole or any part thereof other than micro-organisms but including seeds, varieties and species and essentially biological processes for production or propagation of plants and animals
(k)a mathematical or business method or a computer programe per se or algorithms;
(l)a literary, dramatic, musical or artistic work or any other aesthetic creation whatsoever including cinematographic works and television productions;
(m)a mere scheme or rule or method of performing mental act or method of playing game;
(n) a presentation of information;
(o) topography of integrated circuits;
(p) an invention which in effect, is traditional knowledge or which is an aggregation or duplication of known properties of traditionally known component or components.
[42] Inventions relating to atomic energy not patentable. -No patent shall be granted in respect of an invention relating to atomic energy falling within sub-section (1)of section 20 of the Atomic Energy Act, 1962 (33 of 1962).
[43] Works in which copyright subsists.—
(1)Subject to the provisions of this section and the other provisions of this Act, copyright shall subsist throughout India in the following classes of works, that is to say,—
(a)original literary, dramatic, musical and artistic works;
(b)cinematograph films;
(c)sound recording
(2)Copyright shall not subsist in any work specified in sub-section (1), other than a work to which the provisions of section 40 or section 41 apply, unless,—
(i)in the case of a published work, the work is first published in India, or where the work is first published outside India, the author is at the date of such publication, or in a case where the author was dead at that date, was at the time of his death, a citizen of India;
(ii)in the case of an unpublished work other than work of architecture, the author is at the date of the making of the work a citizen of India or domiciled in India; and work of architecture, the author is at the date of the making of the work a citizen of India or domiciled in India; and
(iii)in the case of work of architecture, the work is located in India. work of architecture, the work is located in India." Explanation.—In the case of a work of joint authorship, the conditions conferring copyright specified in this sub-section shall be satisfied by all the authors of the work.
(3)Copyright shall not subsist—
(a)in any cinematograph film if a substantial part of the film is an infringement of the copyright in any other work;
(b)in any sound recording made in respect of a literary, dramatic or musical work, if in making the sound recording, copyright in such work has been infringed. 1[sound recording] made in respect of a literary, dramatic or musical work, if in making the 1[sound recording], copyright in such work has been infringed."
(4)The copyright in a cinematograph film or a 1[sound recording] shall not affect the separate copyright in any work in respect of which or a substantial part of which, the film, or, as the case may be, the 1[sound recording] is made.
(5)In the case of 2[work of architecture], copyright shall subsist only in the artistic character and design and shall not extend to processes or methods of construction.
[44] Admissibility of electronic records.—
(1)Notwithstanding anything contained in this Act, any information contained in an electronic record which is printed on a paper, stored, recorded or copied in optical or magnetic media produced by a computer (hereinafter referred to as the computer output) shall be deemed to be also a document, if the conditions mentioned in this section are satisfied in relation to the information and computer in question and shall be admissible in any proceedings, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.
(2)The conditions referred to in sub-section (1) in respect of a computer output shall be the following, namely:—
(a)the computer output containing the information was produced by the computer during the period over which the computer was used regularly to store or process information for the purposes of any activities regularly carried on over that period by the person having lawful control over the use of the computer;
(b)during the said period, information of the kind contained in the electronic record or of the kind from which the information so contained is derived was regularly fed into the computer in the ordinary course of the said activities;
(c)throughout the material part of the said period, the computer was operating properly or, if not, then in respect of any period in which it was not operating properly or was out of operation during that part of the period, was not such as to affect the electronic record or the accuracy of its contents; and
(d)the information contained in the electronic record reproduces or is derived from such information fed into the computer in the ordinary course of the said activities.
(3)Where over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly performed by computers, whether—
(a)by a combination of computers operating over that period; or
(b)by different computers operating in succession over that period; or
(c)by different combinations of computers operating in succession over that period; or
(d)in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers, all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single computer; and references in this section to a computer shall be construed accordingly.
(4)In any proceedings where it is desired to give a statement in evidence by virtue of this section, a certificate doing any of the following things, that is to say,—
(a)identifying the electronic record containing the statement and describing the manner in which it was produced;
(b)giving such particulars of any device involved in the production of that electronic record as may be appropriate for the purpose of showing that the electronic record was produced by a computer;
(c)dealing with any of the matters to which the conditions mentioned in sub-section (2) relate, and purporting to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or the management of the relevant activities (whichever is appropriate) shall be evidence of any matter stated in the certificate; and for the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it.
(5)For the purposes of this section,—
(a)information shall be taken to be supplied to a computer if it is supplied thereto in any appropriate form and whether it is so supplied directly or (with or without human intervention) by means of any appropriate equipment;
(b)whether in the course of activities carried on by any official information is supplied with a view to its being stored or processed for the purposes of those activities by a computer operated otherwise than in the course of those activities, that information, if duly supplied to that computer, shall be taken to be supplied to it in the course of those activities;
(c)a computer output shall be taken to have been produced by a computer whether it was produced by it directly or (with or without human intervention) by means of any appropriate equipment. Explanation.—For the purposes of this section any reference to information being derived from other information shall be a reference to its being derived therefrom by calculation, comparison or any other process.
[45] Supra N 23
[46] Supra N 23
