Digital signatures: Notes

A signature on a document means the person signing it takes responsibility of the content mentioned in the document. Digital signature is a signature developed for the online world; it allow us to verify the author and authenticate the message contents.

What is a Digital Signature Certificate? A Digital Signature Certificate is a secure digital key that is issued by the certifying authorities for the purpose of validating and certifying the identity of the person holding this certificate. Digital Signatures make use of the public key encryptions to create the signatures.

Academic Questions / Case Studies

Q. Swan International Agency Pvt. Ltd. (Swan) is in the business of publishing books, e-books, internet blogs for writers, various other internet publications etc. It wants to expand its business and therefore it also requested to become a certifying authority under the IT Act. The Memorandum of Association of Swan permits any other business to be done by the company. Swan applies to the Controller of Certifying Authority to become a certifying authority since it is in business of publishing electronic books and has various electronic writers’ blogs who wish to transact online and thus would be more comfortable in applying to Swan for digital signature certificate than to any other certifying authority. The Controller of Certifying authority gave a one year license to Swan. Within 6 months of the grant of license of Certifying authority, there was a raid on Swan’s premises by CBI and Delhi Police alleging that it is allowing the digital signature certificate to be misused and thus has caused massive economic losses to various people. Swan’s directors are prosecuted. One of the creditors of the company wants to liquidate the company and applies to the High Court in this regard.

Having regard to the above facts, answer the following questions giving adequate reasons:

(i) Whether SWAN could have got the certifying authority license from Controller of Certifying Authority in the first place?
(ii) Whether SWAN’s directors can be punished for the misuse of digital signature certificate information and whether penal action can be taken against them?
(iii) Whether SWAN can be liquidated by the High Court and if so what additional formalities are required?

Q. Explain the mechanism of a Digital Signatures which is recognized under the Information Technology Act, 2000 and state at least two (2) of its applications.