LAW AND EMERGING TECHNOLOGIES

Unit –I

Introduction: Notion of Technology

EMERGING OF TECCHNOLOGY AND REVOLUTION

The industrial revolution was a transformation of human life circumstances that

occurred in the late 18 and 19 centuries (1760 – 1840). the Britain, united states,
western Europe grew in large majors to advances in the technology and the
industries.
Historical background
The industrial revolution in the United Kingdom in Early’s 17th century.
 Innovation- the commencement of industrial revolution is closely linked to a
small number
 Iron – the iron industry was finally applied to all the stages of iron replacing
charcoal.
 Chemicals – In large scale production of chemicals was an important
development in Industrial revolution.
New inventions and technologies played an important role in the Industrial Revolution. They changed the way things were powered, how goods were
manufactured, how people communicated, and the way goods were transported. These new developments allowed the industrial revolution to grow
rapidly and spread throughout Europe and the United States.

New Power Technologies

In the early part of the Industrial Revolution natural power sources such as water and wind were used as power. Later, new power technologies such as
a steam power and electricity played a major role in allowing the Industrial Revolution to grow.

Steam Power

Steam power had been around for a while, but in 1781 James Watt invented a new type of steam engine that could be used to power machines in factories.
This allowed factories to be located anywhere. Throughout the 1800s steam engines grew bigger and more powerful. They were used to not only power
factories, but also in transportation to power steamboats and trains.
Electricity

Electricity became important during the Second Industrial Revolution in the late 1800s. Electric lights allowed factories to stay open longer and produce
more goods.
Textile Technology

The Industrial Revolution began in the textile industry. The ‘Spinning Jenny’ was an engine for spinning wool or cotton invented in 1764 by
James Hargreaves, who had it patented in 1770.

Able to be operated by unskilled workers, it was a key development in the industrialisation of weaving, as it could spin many spindles at a time,
beginning with eight at a time and increasing to eighty as the technology improved.

The weaving of cloth was now no longer centred in the homes of textile workers, moving from a ‘cottage industry’ to industrial manufacture.

The Industrial Revolution began in the United States with the opening of Slater's Mill in 1793. Other inventions included the cotton gin by Eli Whitney
in 1793 and the sewing machine by Elias Howe in 1846.

Communications

The ability to communicate across long distances improved dramatically during the Industrial Revolution. On 25 July 1837 Sir William Fothergill Cooke
and Charles Wheatstone successfully demonstrated the first electrical telegraph, installed between Euston and Camden Town in London. The electrical
telegraph was later on invented by Samuel Morse in 1844. This system allowed for messages to be transmitted much quicker and cheaper than old
methods. In 1876, Alexander Graham Bell invented the telephone which changed the way people communicated forever.

Transportation
 a. Newcomen steam engine
In 1712, Thomas Newcomen invented the first steam engine, known as the atmospheric engine. It was used predominantly to pump water out from coal
mines, allowing the miners to dig further down.
The engine burned coal to create steam which operated the steam pump, pushing a movable piston. It was made in its hundreds throughout the 18th
century.This was an improvement on a crude steam powered machine built by fellow Englishman, Thomas Savery, whose 1698 machine had no moving
parts. It was, however, still dreadfully inefficient; it required huge amounts of coal to function. Newcomens’ design would be improved by James Watt
during the latter half of the century.

b. Watt steam engine

Scottish engineer James Watt invented the first practical steam engine in 1763. Watt’s engine was very similar to Newcomen’s, but it was nearly twice
as efficient as it required less fuel to run. This more fuel efficient design translated into huge monetary savings for the industry and Newcomens’ original
atmospheric steam engines were later converted to Watts’ new design.

It was introduced commercially in 1776 and became the basis for future developments that saw the steam engine become the main source of power for
a large variety of British industries.

c. Locomotive

We explore the acceleration of transport innovation, from the steam engine to space travel.
The first recorded steam railway journey took place on 21 February 1804, when Cornishman Richard Trevithick’s ‘Pen-y-Darren’ locomotive carried
ten tons of iron, five wagons and seventy men the 9.75 miles from the ironworks at Penydarren to the Merthyr-Cardiff Canal in four hours and five
minutes. The journey had an average speed of c. 2.4 mph.

The photograph
In 1826, French inventor Joseph Nicéphore Niépce created the first permanent photograph from a camera image. Niépce captured the photograph from
his upstairs window using a camera obscura, a primitive camera, and a pewter plate, having experimented with various light-sensitive materials.
This, the earliest surviving photograph of a real-world scene, depicts a view of Niépce’s estate in Burgundy, France.

The typewriter
In 1829 William Burt, an American inventor, patented the first typewriter which he called a ‘typographer’. It was dreadfully ineffective (proving slower
to use than writing something out by hand), but Burt is nonetheless regarded as the ‘father of the typewriter’. The working model of the ‘typographer’,
which Burt had left with the U.S. Patent Office, was destroyed in a fire which demolished the building in 1836.
Only 38 years later, in 1867, the first modern typewriter was invented by Christopher Latham Sholes.

The electric generator

The first electric generator was invented by Michael Faraday in 1831: the Faraday Disk.
Although the machine’s design was not very effective, Faraday’s experimentation with electromagnetism, including the discovery of electromagnetic
induction (the production of voltage across an electrical conductor in a changing magnetic field), soon led to improvements, such as the dynamo which
was the first generator capable of delivering power for industry.

The modern factory

With the introduction of machinery, factories began springing up first in Britain and then across the world. There are various arguments as to the first
factory. Many credit Derby’s John Lombe with his five storey red brick silk mill, completed in 1721. The man often credited with inventing the modern
factory, however, is Richard Arkwright, who constructed Cromford Mill in 1771.

Located in the Derwent Valley, Derbyshire, Cromford Mill was the first water-powered cotton spinning mill and initially employed 200 workers. It ran
day and night with two 12-hour shifts, the gates being locked at 6am and 6pm, permitting no late arrivals.

Factories altered the face of Britain and then the world, prompting responses by writers. William Blake condemned the “dark, satanic mills”. In response
to accelerated movement away from the countryside after the birth of factories, Thomas Hardy wrote about “the process, humorously designated by
statisticians as ‘the tendency of the rural population towards the large towns’, being really the tendency of water to flow uphill when forced by machinery.”

Interesting Facts About Inventions and Technology During the Industrial Revolution
 Englishman Henry Bessemer invented the Bessemer process in 1856. It allowed for steel to be mass-produced cheaply.
 Thomas Edison invented the first practical incandescent light bulb in 1879.
 Isaac Singer made improvements on the sewing machine and produced one of the first practical sewing machines for home use.
 In 1853, Elisha Otis invented a safety break for elevators. This allowed for the practical use of elevators enabling buildings to be built much
taller.
 The Erie Canal was completed from Lake Erie to the Hudson River in 1825.
TECHNOLOGY AND SOCIETY

Technology and human lives cannot be seperated society has a co- dependence on
technology. We use technology depends on tech. in our daily lives and demands
for technology keep on rising. Human use tech. to travel, communicate, to learn, to
do business and to live in comfort.

There are the list of positive and negative impact of technology in the society.
Technology has recognized agriculture – modern agriculture technology allows a
small no. of people to grow vast quantities of food in a short period of time with
less inputs which result into high yields through the government subsidy small and
medium sized farmers have managed to acquire watering and harvesting methods.
Technology made transportation of goods and people more convenient than before- Both society and business have benefited from new
transportation methods. Transportation has provided mobility for people and goods. It is a series of parts that they are interrelated. These parts work
altogether to meet a certain goal. Transportation uses vehicles, trains, aeroplanes, motorbikes. Etc.
Technology has helped in advancing all the four main types of transportation and
these include
1. road transportation used by automobiles.

2. Air transport used by aeroplanes

3. Water transport which is used by ships and boats.

4. Space transportation used to go to the moon.

 Technology has improved communication which is used for number of purposes.

Both society and organisation depend on communication, to transfer information,

people use technology to communicate with each other. Electronic media like

radio, T.V internet, social media have improved the way that exchanges the ideas

which develops our society. In many countries, radio and T.V are used to voice the

concern of the society. A good example is the U.S presidential election in which

president Barack Obama had embraced the communication technology and reach

voice out his concern towards the development of United States of America. Small

businesses have also used the internet and mobile communication technology to

grow and improve their customer services.

 Technology has improved learning process/education - education is the backbone

of every economy, people need well organised structure so that they can learn how to live their lives. Technological innovation in the field of education
has significantly aided the dedication system. Technology has greatly expanded access to education. In medieval times, books were rare and only an elite
few had access to educational opportunities. Individuals had to travel to centers of learning to get an education. Today, massive amounts of information
(books, audio, images, videos) are available at one’s fingertips through the Internet, and opportunities for formal learning are available online worldwide
through the Khan Academy, MOOCs, podcasts, traditional online degree programs, and more. Access to learning opportunities today is unprecedented
in scope thanks to technology.

Technology is being used to interpret the information. Many schools have started integrated education technology in their schools with a great aim of
improving the way student’s morale. Technology like smart white board, computers, mobile phones, iPad, projectors & internet are being used in class
room to boost student to learn. Visual education is becoming more popular & it has proved to the best method of learning in many subjects like physics,
biology, maths, geography and much more.

For ex: iTunes, you will find many educational applications which can allow the

students and teachers exchange academic information.

NEGATIVE IMPACTS OF TECHNOLOGY IN SOCIETY

1. Resource Depletion: The more demand is for technologies and advancement of

current technologies, the more pressure on earth’s natural resources, the total

number of mobile phones and computers are being manufactured today. Our
population is increasing everyday and all these billion consumers demand either a

mobile phone or computers in their homes or offices. This is a good news for the

manufactures like apple and Samsung demand for their gadgets is high but too

sustain this demand, they have to exploit the nature for resources like aluminium,

once these resources are extracted from the earth plates, they will never return

back because it took them a billion years to mature, that means at one time we

shall be left with no natural resources, which can be a problem for future

generations. Ex- intensive farming practices will deplete the soil, the heavy

application of commercial fertilizers necessary to yield healthy harvest but these

fertilizers have chemicals which are dangerous to soil.

2. Increased populations: Technology has helped us to live longer by improving

help facilities and aiding in research for solution for most health problems which

effects humans, this news is good for developed countries but is bad news for

developing countries which have not been in a position to excess these health care

benefits brought by technology. In developed countries, population is controlled

by advance birth control methods.

 3. Increased Pollution: The increased demand for new technologies and its

advancement has resulted in many manufacturing & processing factories. As they

work hard to create the best technologies for both the society and business, they

release harmful chemicals and gases, which have polluted our environment & this

has resulted in climate changes (Global Warming).

Most modern technological processes produce unwanted products in addition to

the desired products which is knows as industrial waste and pollution.

Legal Order and Technological Innovation

Legal Order is directive being issued by the court of law with respect to a particular dispute. It is a form of judgement expressed either in the form of a
decree or order on the basis of facts and circumstances of the case. It is a form of a direction which is in favour of one party and against another. It seeks
to resolve dispute. Legal order can be given by any person empowered to adjudicate any dispute which arises. Generally a legal order emerges from a
legal petition or application submitted in legal or prescribed form before the concerned authority over which legal order is passed.

Legal order contains the details of the decision made by the adjudicating official, names of the parties, particulars of the adjudicating officer such as his
name and designation, date and place of the decision, effective date of the decision. A legal order can be modified or quashed.

There has been Technological Innovation in the legal field. Now a days law firms and advocates have started creating their own websites wherein they
provide details of the services offered by them. This has enabled the public or common man to reach out to them easily in case of any dispute he or she
faces. These firms also provides services such as drafting of legal documents, vetting of such documents, consultancy services.
It is important to note that all such services extensively involves use of technology and modern devices. For instance laptops, computer systems etc. are
being used not only for the purpose of drafting the legal documents but also for the purpose of vetting them. Furthermore, several apps like e courts app
provides information about the status of the case along with the order passed in the hearing of a matter via mobile phones. Not only this the technology
is widely being used in courts.

Digital filing of the case has allowed the lawyer/litigant to check the status of the filing, applications, order so passed, and date of next hearing of the
case by the courts at the click of the button which prior to the use of ICT remained to be a tedious, costly and time-consuming process and thereby
making difficulty in having access to justice. While making appeals, a huge amount of time was wasted in summoning the cases from lower courts
leading to delay. Furthermore, the need for use of ICT in the Indian Judiciary, also becomes necessary as Cases are adjourned merely because affidavits
filed several years ago were not restored or traceable. In order to overcome the aforesaid challenges faced by the Indian Judicial System and to make it
effective, ICT was introduced in the Indian Judicial System thereby, leading towards the creation of E-Courts in India.

E-COURT PROJECT

The establishment of the E-courts committee can be visualized as a foundation stone towards the introduction of ICT in the Indian Judicial System. The
committee was established by the efforts of the Hon’ble Supreme Court of India in 2004 with the view of assisting computerization of the judicial system
in the nation.

The E-committee is the governing body responsible for supervising the E-courts Project, which is envisioned in the "National Policy and Action Plan
for Implementing Information and Communication Technology (ICT) in the Indian Judiciary-2005." E-courts is a pan-India project supervised
and funded by the Ministry of Law and Justice, Government of India. Its goal is to transform the country's judiciary via court ICT enablement.

The project has been introduced by keeping following objectives in mind:-

  Ensuring Development, installation and implementation of efficient justice delivery systems in courts.
 Making processes automatic thereby ensuring easier accessibility of information to its stakeholders.
 Improving judicial productivity, both qualitatively and quantitatively, by making the justice delivery mechanism quite convenient, cost-effective,
highly reliable, and transparent.

National Judicial Data Grid (NJDG)

Being a part of E-court Project, NJDG acts as a monitoring tool which is being used for identifying, managing and reducing the pendency of cases. It
involves provision of real time data for the pending cases The National Judicial Data Grid (NJDG) is a monitoring tool that can be used to identify,
manage and reduce the pendency of cases. It provides real-time data for the number of pendencies. It also classifies pending cases on the basis of women
and children.

USE of ICT in LEGAL SYSTEM

 One can easily check the status of his case by visiting the court's website and download the judgements passed in the case rather than approaching
the lawyer for doing the same.
 ICT has introduced Virtual hearings whereby, parties who are unable to attend court proceedings can attend the same virtually. This ensures
them that their case is being defended by the counsel engaged by them and adds accountability to the judicial system.
 The facility of downloading orders and judgments via the courts website, enables litigants and parties to prepare for their next step before getting
a certified copy of the same.
 E-courts app etc. available on the google play store has made accessibility to the status of the case along with order/judgements at the click of the
button and the same can be accessed via mobile phone.
 Any person including litigant or party to the case suffering from any illness or any physical deformity or coming from an underprivileged part
of the society will be able to attend the court proceeding virtually
 The E-court Project, includes Case Information System (CIS) which helps in solving the issue of record keeping and case management. It reduces
the chances of misplacement of information as the same being carefully recorded and stored. The system allows the litigant to know status of the
case, orders passed by various courts, date of hearing of the case etc. online, accessible to any part of the world.
 At the time of filing of the case the litigant is given a CNR along with acknowledgement. The CNR allows litigants to check the status of the case
whether it has been accepted or rejected along with the details of the order through SMS or online via court`s website.
 Virtual Courts enable the Judges to hear personally each case which might not be possible for them in case of physical proceedings.
UNIT II

E-COMMERCE

In today’s world, a large number of international trade transactions are carried out by electronic data interchange and other means of communication,
commonly known as “electronic commerce”. It uses alternatives to paper-based methods of communication and storage of information. The United
Nations Commission on International Trade Law (UNCITRAL), by the means of Model Law on Electronic Commerce (MLEC), sought to provide a set
of internationally acceptable rules with an aim to remove legal obstacles and increase legal predictability for e-commerce. It has further improved the
efficiency in international trade by providing equal treatment to paper based and electronic information, thus enabling the use of paperless
communication.

The model law is not a comprehensive, code-like articulation of the rules for the electronic transactions. It does not intend to govern every aspect of
electronic contracting. It adopts a limited framework approach and enables and facilitates e-commerce. It has adopted the following fundamental
principles of the modern electronic-commerce law:

The principle of non-discrimination – It ensures that any document would not be denied legal validity, effect, and enforceability solely on the basis that
it is in electronic form.

The principle of technological neutrality – It mandates the adoption of such provisions which are neutral with respect to technology used. This aims at
accommodating any future developments without any further legislative work.

The functional equivalence principle – It sets out the specific requirements that e-communication ought to meet in order to fulfill the same functions that
certain notions ,in traditional paper based system, seek to achieve, for example, “writing”, “original”, “signed”, and “record”.
All the states have given favourable consideration to the model law while enacting or revising their laws so that uniformity of the law applicable to the
alternatives to the paper-based methods of communication is facilitated. This article deals with a brief history and key provisions of the Model Law of
E-commerce to better understand the objectives of MLEC and how they are achieved.

With the advent of globalization and rapid increase in digitization of work, a major change in the mode and method of communication between businesses
was witnessed. This was the introduction of the electronic mode of communication and storage of information. UNCITRAL decided to prepare the Model
law in response to such change, thus, giving the nations an internationally acceptable set of rules for the evaluation and modernization of their laws and
practices in the field of commercial relationships involving the use of computerized mode of communication. It also helped in establishment of relevant
legislation where none existed and promotion of harmonization and unification of international trade laws. Thus, the UNCITRAL Model Law of E-
commerce was adopted by the United Nations Commission on International Trade Law in 1996.

The Model Law has been divided into two parts. The Part I relates to the general provisions relating to e-commerce, it legislates the three principles of
non-discrimination, technological neutrality, and functional equivalence. Besides establishing uniformity in the laws regarding e-commerce and legal
relevance for data communicated through electronic mode, MLEC also establishes rules for formation and validity of e-contracts, for data message
attribution, for receipt acknowledgement and for determining receipt of data messages, etc.

The Part II of the Model Law deals with specific provisions for e-commerce in certain areas. General Provisions

Article 2 of the Law provides six definitions, the most important one is of “Data message”. It is defined as information generated, sent, received, or
stored by electronic, optical, or similar means. This definition has been attributed after taking into consideration the future technological developments
as well, which is the reason for inclusion of the term similar means. This wide definition includes the notion of a record and even revocation and
amendment. The sphere of application that Article 1 talks about, is for the information in the form of data messages, in the context of commercial
activities.

The Model Laws give the interpretational tools (Article 3) which call for a standard of international origin and uniformity in application of general
principles of law. There can be variation in the communication of data messages by the agreement of the parties(Article 4).

E-CONTRACTS

The electronic or e-contracts help in making agreements and transactions electronically in the physical absence of the parties. It aims at making
lawfully binding contracts at a much faster rate with the use of latest technology. The electronic transactions today are used for a variety of purposes
including recognition of digital signatures and electronic records, filing income-tax returns, fillings forms for admissions, paying bills online and
others.

An e-contract is a contract modelled, executed and enacted by a software system. It is a contract “drafted” and “signed” in an electronic form.

FORMS OF ELECTRONIC CONTRACTS

The following forms of Electronic Contracts are in vogue in the Indian business scenario.

A) E-Mail Agreements: The e-mails which convey the clear intention of parties can be treated as a binding contract. E-mail contracts are
similar to any other form of contracts and are therefore governed by the provisions of the Indian Contract Act. Therefore any e-email
contract cannot be executed or validly enforced until and unless it satisfies all the required fundamental requirements.
I. First, the terms and conditions of the contract must be agreed to by both the parties on the acceptance of an issued offer.
II. Second, intention to create a legally binding contract must be present.
III. Third, the vital element of consideration must be agreed upon.
IV. Therefore, all the statutes which relate to e-mail contracts must be read along with, and not in place of the Indian Contract Act.

The Information Technology Act (IT Act) has recognised e-mail contracts as legally valid and binding. It particularly mentions that a contract
cannot be deemed invalid solely on the basis of it being an online exchange of offer and acceptance. Section 10A of the Information Technology
Act hints at the validity of e-mail contracts.

Section 10A of the IT Act: “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.”

E-mail records can be admissible as evidence in courts under the Indian Evidence Act. Hence issue of an offer or acceptance via mails can give
rise to binding contracts and these electronic records can be used an evidence in courts to enforce the contracts.

Section 85A of the Evidence Act: “The Court shall presume that every electronic record purporting to be an agreement containing the
[electronic signature] of the parties was so concluded by affixing the [electronic signature] of the parties.”

B) On line Agreements: On line agreements are of three kinds

 Browse Wrap Agreements : Browse-wrap agreements cover the access to or use of materials available on a website or
downloadable product. Only if the person agrees to the terms and conditions on the web page, then he can access the contents
of the web page. These include the use of the website. These include the User Policies and terms of service of web sites and are
in the form of a “terms of use” or “terms of service”, which can be used as the links at the corner or bottom of website.

 Click-Wrap Agreement: A clickwrap agreement is commonly found as part of the software installation process. It's also
referred to as a "click-through" agreement or a "click-wrap licence." It is a take-it-or-leave-it contract with no negotiating power.
If a customer likes a product and wants to buy it or use its service, he clicks on 'I accept' or 'Ok,' and if he rejects it, he cannot
buy or use it. Such contracts are generally found where one needs to download or use a software or where one needs to purchase
any product or service online like buying product from Flipkart.

The following types of click-wrap agreements exist: 1. Type and Click, in which the user must type "I accept" or other specified
words in an on-screen box before clicking a "Submit"
or similar button. This indicates that the contract's
terms have been accepted. A user cannot proceed to
download or view the target information unless these
steps are followed. 2. Icon Clicking, in which the user
must click a "OK" or "I agree" button on a dialogue box
or pop-up window. A user indicates rejection by
clicking “Cancel” or closing the window.
 SHRINK-WRAP : Shrink wrap (Plastic Wrapping) contracts are boilerplate or license agreements or other terms and
conditions which are packaged with the products. The usage or the tearing off the plastic wrapping of the product deems the
acceptance of the contract by the consumer. The term ‘Shrink Wrap’ describes the shrink wrap plastic wrapping which coats
software boxes or the terms and conditions like fees and payments, conditions and warranties which come with products on
delivery.

PC programming organizations broadly depend on the utilization of “shrinkwrap” permit assertions in the mass business sector
circulation of programming. “Shrinkwrap” assertions are unsigned permit understandings which state that acknowledgment on
the client of the terms of the assertion is demonstrated by opening the shrinkwrap bundling or other
Bundling of the product, by utilization of the product, or by some other determined instrument.
 FORMS OF E-CONTRACTS

ONLNE
E CONTRACTS AGREEMENTS

SHRINK CLICK BROWSE

WRAP WRAP WRAP
How E-Contracts Can Be Entered Into: Contracts entered into via electronic means such as mail, fax, Whatsapp, and so on. The essential
elements for establishing an electronic contract are laid out in the Indian Contract Act, 1872.
Offer and Acceptance: When an offer is made online, and the acceptance is also made online.
Lawful Purpose and Consideration: A contract is valid when its purpose is legal and the consideration is based on something. It is not
deceptive in any way, and the parties are properly considering each other.
Parties' Capacity and Free Consent: Parties are capable of entering into a contract if they are competent to contract and their consent is free.
Because the idea of executing an E-Contract is intimidating, many people are concerned about its validity, especially when compared to older
binding contracts. The fact is that the Indian Contract Act of 1872 did not expressly set out any clear method of communicating proposals and
which constitute approval.

Evidentiary Value of Electronic Records:

Defined in section 65-A of the Indian Proof Act, 1872, courts in India recognize online documents. Its system for furnishing digital records and
documents is defined under Section 65-B of the Indian Evidence Act, 1872.
Anything contained in a digital record produced by a computer in written, stored or copying type should be deemed a report in compliance with
Section 65-B of the Indian Evidence Act, 1872 which could be applicable to the case without any other clear facts in any courtroom. The
applicability with the same must, therefore, become pursuant to a various conditions specified under section 65-B of that act. The
report required to be created from a device must be regularly used with an individual with both the legal authority of the system at the time of its
creation; the document must have been downloaded or received even during normal course of activity; this data should be sent regularly to a
device;
Electronic Signatures:
The Information Technology (Amendment) Act of 2008 replaced the word ‘digital signature’ with the phrase ‘e-signature.’ A e-signature is
the particular technology and is irrevocably exclusive both to the signer and the paper. A digital document, though, is of an impartial and specific
type of technology. But there is no electronic signature standard. This could either be a typed name or a hand-written signatures digitized
photograph.
Recognizing the change in the execution of commercial transactions the Supreme Court in the case Trimex International FZE vs Vedanta
Aluminum Limited, India, 2010 (1) SCALE 574 disregarded the argument that exchanges over e-mail did not qualify as contracts and held that
“Once the contract is concluded orally or in writing, the mere fact that a formal contract has to be prepared and initialed by the parties
would not affect either the acceptance of the contract so entered into or implementation thereof, even if the formal contract has never been
initialed.” The court turned down the plea of Vedanta which had opposed arbitration to resolve its dispute with the Dubai-based firm. Vedanta
had taken the ground that there was no signed contract between them for arbitration.

“In the absence of signed agreement between the parties, it would be possible to infer from various documents duly approved and signed by
the parties in the form of exchange of emails, letter, telex, telegrams and other means of telecommunication,”
Thus, the e-mails which convey the clear intention of the contracting parties can be treated as a binding contract.

JURISDICTIONAL ISSUES WIYTH RESPECT TO E-COMMERCE

The preamble to The Information Technology Act, 2000 outlines the need to provide legal recognition to E-Commerce transactions and is also
applicable to offenses committed outside India and involves a computer, system or network located in India.The act recognizes electronic mode
of communication as a tool for enforcement of valid contracts across the
country. Furthermore, it also awards recognition to digital signatures and digital awards as basis for initiating litigation across courts in the
country. Courts presume that with respect to digital signatures, the information provided in the certificate is true and correct, providing legal
recognition to E-Contracts. Information stored in the form of electronic documents are deemed as documents and are admissible as evidence
before the court of law. While there doesn’t seem to be a lot of Jurisprudence with respect to Jurisdiction in cases of disputes arising out of E-
Commerce, The Indian Penal Code, 1860 states that any person liable by Indian law commits an offence outside the territory of India, he shall be
held liable in the manner as if such act had been committed within the territory of India. In the case of SMC Pneumatics v. Jogeshwar Kalra,
the Delhi High Court has assumed extra territorial jurisdiction where a corporation was being defamed through emails. With respect to E-
Commerce transactions, the question pertaining to territorial disputes gets complicated, mainly due to the fact that the Internet is borderless. The
Delhi High Court has , on several occasions addressed the Jurisdiction issue with respect to cyber space. In the Banyan Tree Case, the Delhi
High Court has held that in order to satisfy a court that it had the Jurisdiction to entertain a suit when the Plaintiffs were a hospitality company
registered in
Singapore, it needs to be proved that the Defendant purposefully availed itself of the Jurisdiction of the court.
The Code of Civil Procedure provides for institution of proceedings in a court within whose jurisdiction defendant resides or the cause of action
arises. The Supreme Court has thus observed that it is indeed a common ground that courts in India should have the jurisdiction to issue an
injunction to a party over which it has a personal jurisdiction. However, this power shall be used in extremely rare cases because an injuction,
even though directed against a person in his personal capacity causes interference with the jurisdiction of another court.
Acknowledging the growing concept of E-Commerce, the Delhi High Court has held that the presence of the concerned person at the place is not
necessary to file a suit and only the threefold requirements pertaining to agency for the purpose of carrying on business shall be fulfilled.
Furthermore, the Supreme Court has clarified that if the plaintiff is engaged in trading across the country, he is entitled to his choice of forum to
initiate proceedings.

The Supreme Court has also derived a Purposeful Availment Test to adjudicate matters to which Internet companies are made parties. The Courts
primarily look at three factors while adjudicating on jurisdiction in certain cases. These include:

i. Availment of a company to another jurisdiction.

ii. Whether the commission of the act/offence happened in another jurisdiction.
iii. Whether the jurisdiction is reasonable enough for the defendant to defend himself.

Another test derived by the Supreme Court is the Forum Convenience Test to advance the proposition that even if a small part of the cause of action
arises within the territorial jurisdiction of the High Court, it does not give the complete authority to the High Court to adjudicate the matter upon its
merits and in cases where it may be deemed appropriate, the High Court can actually refuse to exercise its discretionary jurisdiction. The Delhi High
Court has further clarified the proposition citing that once a website is even accessed from Delhi, it is sufficient to invoke the territorial jurisdiction of
the court. Once a domain name is accessed from anywhere, the territorial jurisdiction is no longer restricted to the place of residence of the defendant.

The Judiciary has not had many opportunities to address the issue of Jurisdiction Issues pertaining to E-Commerce in India. Hence, it is worth noting
that the precedents established so far are subject to further review and the grey area pertaining to conferring jurisdiction upon an adjudicating authority
is still a work in progress.
CONCLUSION

The Information Technology Act, 2000 is the primary legislation that governs E-Commerce in India and it lacks a lot of specificity required to govern
online transactions, including Jurisdictional issues. E-Commerce is still an emerging field, the law is still evolving and will take some time to develop
successfully. There is a dire need for specific provisions that are beneficial and friendly to the consumer. While most E-Commerce transactions happen
in a B2C form i.e. Business to Consumer form, the Jurisdiction that is conferred upon the consumer courts is only pecuniary in nature. The existing
framework with respect to the Information Technology Act must be read in accordance with the provisions of the Indian Contract Act, 1872. While the
issues pertaining to the place of suing are, in most cases governed by the CPC, there is no provision that provides for enforcement of a foreign judgement
except for Section 10 of the CPC. In cases where the jurisdiction is not conferred upon any court through a contract in cross border transactions,
enforcement of such judgements becomes a grey area of concern, especially in Private International Law. Moreover, for MNCs carrying out business
across the country, the liberty to file a case in the place where they are carrying out business gives them sufficient scope for Forum Shopping, which is
not beneficial to the consumer and thus, some clarity with respect to choice of forum here is necessary. In the future, there is a need for a separate
legislation to govern E-Commerce transactions that would take into account the existing provisions of the Indian Contract Act and Information
Technology Act and provide proprietary information structures that
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Electronic signature
An electronic Signature provides an electronic representation of the individual’s identity that provides the proof of consent and assents to the
facts of the given signature. In toto, it’s an approval from the signatory that he assents to the written format of the same electronically. It is
important to ensure that it is coming from the authorised signatory and has made no modifications to the document.

Features of Electronic Signature

 Revealing the signer's intent to sign the document. It usually complies with contracts or other agreements that are entered into by two parties.
 They are legally binding once all parties have demonstrated their commitment and intention to enter into a particular contract.
 Helps in verifying the authenticity of the document.
 Used for executing an agreement This agreement becomes legally binding if both parties sign it. In this case, you can use an electronic
signature. In addition, electronic signatures are often used in contracts because they are easy to use.
Digital Signature
A signature is a symbolic and essential representation of one’s identity. Signature of a person holds a very significant place in the field of law as
well as while carrying out transactions. When a person signs a particular document, it means that such a person has read the whole document
carefully, has verified the facts and is aware of the contents of the document and therefore is giving his assent to the best of his knowledge.

Under the contract law also, signature holds a vital position as it is considered as a sign of acceptance of an offer. The Conventional form of
signatures has evolved a lot due to technological advancement. With the increased usage of online transactions and e-mails, the risk of the data
being hacked has also increased. Hence, the concept of online signatures has become relatively important.

Main features of the digital signature

 A digital signature is a unique characteristic in digital form, something like a fingerprint embedded in a document. The signer must have a digital
certificate to be associated with the document.
 The certification authority issues the digital signature.
 It being comparable to a driver's license or passport.
 It helps to verify the document's authenticity to determine if it has been tampered with. It plays a primary role in identity verification.
 It is used for protecting digital documents. Fraudsters can forge documents to submit online using an electronic signature, but with a digital
signature, it is nearly impossible.
 Only an authorized person can view it to make changes or edits.
 When a digital signature is applied to a specific document, the digital certificate is bound to the signed data in a single, unique fingerprint.

Table Showing Differences between Digital Signature and Electronic Signature

Thus, although both electronic and digital signatures are legally binding, it is preferable to use the latter because they are more secure than the former.

E-Payment

An e-payment or Electronic Payment system allows customers to pay for the services via electronic methods.

They are also known as online payment systems. Normally e-payment is done via debit, credit cards, direct bank deposits, and e-checks, other alternative
e-payment methods like e-wallets, bitcoin, cryptocurrencies, bank transfers are also gaining popularity.

Types of e-payment system

E-payments can be done in the following ways,

Internet banking – In this case, the payment is done by digitally transferring the funds over the internet from one bank account to another.

Some popular modes of net banking are, NEFT, RTGS, IMPS.

India currently has various methods to transfer money online such as digital wallets, UPI, and more. However, the most commonly used
online fund transfer method has been:

 National Electronic Funds Transfer (NEFT)

 Real-Time Gross Settlement (RTGS)
 Immediate Mobile Payment Service (IMPS)

While NEFT and RTGS were introduced by RBI (Reserve Bank of India), IMPS was introduced by National Payments Corporation of
India (NPCI). Read further to learn more about these three payment systems.

NEFT

National Electronic Funds Transfer (NEFT) is a payment system that facilitates one-to-one funds transfer. Using NEFT, people can
electronically transfer money from any bank branch to a person holding an account with any other bank branch, which is participating
in the payment system. Fund transfers through the NEFT system do not occur in real-time basis and the fund transfer settles in 23 half-
hourly batches.

RTGS

Real-Time Gross Settlement (RTGS) is another payment system in which the money is credited in the beneficiary’s account in real-
time and on a gross basis. The RTGS system is primarily meant for large value transactions that require and receive immediate clearing.

IMPS

Immediate Mobile Payment Services(IMPS) is a real-time instant inter-bank funds transfer system managed by National payment
corporation of India. IMPS is available 24/7 throughout the year including bank holidays, unlike NEFT and RTGS.
 NEFT, RTGS and IMPS payment systems were introduced to offer convenience and flexibility to the account holders. To use these online fund
transfer services, the remitter must have the basic bank account details of the beneficiary. The bank account details include the beneficiary’s
name and bank’s IFSC. Though all three payment systems are used for funds transfer, they exhibit a few differences.

Card payments – Card payments are done via cards e.g. credit cards, debit cards, smart cards, stored valued cards, etc. In this mode, an electronic
payment accepting device initiates the online payment transfer via card

Credit/ Debit card – An e payment method where the card is required for making payments through an electronic device.

Smart card – Also known as a chip card, a smart card, a card with a microprocessor chip is needed to transfer payments.
Stored value card – These types of cards have some amount of money stored beforehand and are needed to make funds transfer. These are prepaid cards
like gift cards, etc.

Direct debit – Direct debit transfers funds from a customer’s account with the help of a third party

E-cash – It is a form where the money is stored in the customer’s device which is used for making transfers.

E-check – This is a digital version of a paper check used to transfer funds within accounts.

Alternate payment methods – As technology is evolving, e-payment methods kept evolving with it (are still evolving..) These innovative alternate e-
payment methods became widely popular very quickly thanks to their convenience.

E-wallet – Very popular among customers, an E-wallet is a form of prepaid account, where customer’s account information like credit/ debit card
information is stored allowing quick, seamless, and smooth flow of the transaction.

Mobile wallet – An evolved form of e-wallet, mobile wallet is extensively used by lots of customers.It is a virtual wallet, in the form of an app that sits
on a mobile device. Mobile wallet stores card information on a mobile device.The user-friendly nature of mobile wallets makes them easier to use. It
offers a seamless payment experience making customers less dependent on cash.

QR payments – QR code-enabled payments have become immensely popular. QR code stands for ‘Quick Response’ code, a code that contains a pixel
pattern of barcodes or squares arranged in a square grid. Each part of the code contains information. This information can be merchant’s details,
transaction details, etc. To make payments, one has to scan the QR code with a mobile device.

Contactless payments – Contactless payments are becoming popular for quite some time. These payments are done using RFID and NFC technology.The
customer needs to tap or hover the payment device or a card near the payment terminal, earning it a name, ‘tap and go’.
UPI payments – NPCI (National Payment Corporation of India) has developed an instant real-time payment system to facilitate interbank
transactions.This payment system is titled UPI(Unified Payment Interface). Payments via UPI can be made via an app on a mobile device.

Biometric payments – Biometric payments are done via using/scanning various parts of the body, e.g. fingerprint scanning, eye scanning, facial
recognition, etc. These payments are replacing the need to enter the PIN for making transactions making these payments more accessible and easy to
use.

Payments are done via Wearable devices – Wearable devices are rapidly becoming popular among customers. These devices are connected to the
customer’s bank account and are used to make online payments. An example of a wearable used for making an online payment is a smartwatch.

AI-based payments – As machine learning and Artificial Intelligence is creating a revolution all around the world, AI-based solutions are becoming
more popular. Payments based on AI such as speakers, chatbots, ML tools, deep learning tools, etc are making it easier for businesses to maintain
transparency.

How e-payment system works?

Entities involved in an online payment system

4. The merchant
5. The customer / the cardholder
6. The issuing bank
7. The acquirer
8. Payment Processor
9. Payment Gateway
Working of e-payments can be explained in the following three steps,

Payment initiation – Customer finalizes the product/service and chooses the payment method to initiate the transaction. Depending on the payment
method, the customer enters the required information like card number, CVV, personal details, expiration date, PIN, etc.The chosen payment method
either redirects the customer to an external payment page or a bank’s payment page to continue the payment process.

Payment authentication – The information submitted by the customer along with other details like payment information, customer’s account
information is authenticated by the operator. The operator can be a payment gateway or any other solution involved. If everything gets authenticated
positively, the operator reports a successful transaction. Lyra Payment Gateway For Seamless Payment Processing Experience Lyra Payment Gateway
For Seamless Payment Processing Experience A payment gateway is becoming a necessity for businesses that want to accept... On the contrary, if there
is any problem with any of the authentication checks, the transaction fails. After the successful transaction, the customer gets a payment confirmation.

Payment settlement – After the successful authentication process, payment from the customer’s bank gets transferred into the merchant’s account by
the online payment service provider.

Benefits of e-payment systems

 People are almost comfortable with online shopping and e-payments. With this trend, accepting online payment is a must for any business.
  E-payments are making shopping and banking more convenient. They are helping customers to reach more clients locally and globally.

 E-payments are faster making the transactions efficient.

 With e-payments, customers can pay online at any time from anywhere, making them easily accessible and convenient for customers.

 It’s easy to integrate online payment solutions with businesses as many payment processing solution providers offering different types of
solutions.

 Online payment solutions come with security and risk and anti-fraud tools making them reliable and secure not only for customers but also for
merchants.

 E-payments are proved to be highly effective for international transactions, as they are cheaper, easier, faster, and generally are real-time.

In conclusion, if you are running a business, accepting online payments is the need of current times.
E-Banking

It is a blanket term used to indicate a process through which a customer is allowed to carry out, personal or commercial banking transactions
using electronic and telecommunication network. It is a product offered by banks which facilitates online banking, with the help of which the
customer can have access to the bank account in just one click.

E-banking covers facilities such as – fund transfer, checking account statements, utility bill payments, opening of bank account, locating nearest
ATM, obtain information on financial products and services, applying for loans, etc. using a personal computer, smartphone, laptop or personal
digital assistant.

Let’s look at the types of digital payments:

E-banking Services

In simple words, e-banking refers to a banking arrangement, with which the customer can perform various transactions over the internet, which
is end-to-end encrypted, i.e. it is completely safe and secure.

E-banking promotes paperless/cashless transactions. It comes with a number of rights, responsibilities and fees as well. The range of services
covered under E-banking are:

1. Internet Banking: A banking facility provided to the customers through which the customers are able to perform a number of monetary
and non-monetary transactions, using the internet, through the bank’s website or application.
2. Mobile Banking: Almost all the banks have designed their mobile applications with which you can perform transactions at your
fingertips. For this, four things are required – a smartphone, internet, mobile application, and mobile banking service enabled in your
bank account.
3. ATM: Automated Teller Machine, popularly known as ATM is one of the most common and initial service, provided under e-banking. It
is not just a machine with which you can withdraw cash as and when required, but it also allows you to check your account status,
transfer fund, deposit fund, changes mobile number, change Debit Card PIN, i.e. Personal Identification Number.
4. Debit Card: Debit cards are used in our day to day life so as to perform end number of transactions. Debit cards are linked to the
customer’s bank account and so the customer only needs to swipe the card, in order to make payment at Point of Sale (POS) outlets,
online shopping, ATM withdrawal. In this way, the amount is deducted from the customer’s account directly.
5. Credit Card: Just like a debit card, a credit card is also a payment card which the banks issue to the customers on their request, after
checking their credit score and history. It enables the cardholder to borrow funds upto the pre-approved limit and make payment. The
limit is granted by the banks which issue the card. The cardholder promises to repay the amount within a stipulated time, with some
charges, for the use of credit card.
6. Point of Sale (POS): Points of sale system refers to the point, in terms of date, time and place (retail outlet) where the customer makes a
payment, using a plastic card, for the purchase made or services received.
7. Electronic Data Interchange (EDI): EDI is a new mode of communicating information between businesses electronically using a
standardized format, which was conventionally paper-based.
 8. Electronic Fund Transfer (EFT): When money is transferred electronically from one bank to another, it is called as electronic fund
transfer. It covers direct debit, direct deposits, wire transfers, NEFT, RTGS, IMPS, etc.

Benefits of E-banking

 It enables digital payments, which encourages transparency.

 It allows 24/7 access to the bank account.
 It also sends notifications and alerts to get updated with the banking transactions and changes in the rules.
 It lowers transaction cost for the banks.
 It is convenient and easy for customers, as they are not required to visit the bank branch every time.

In a nutshell, any type of banking transaction performed through electronic mode comes under E-banking.

It is a secure, fast and convenient electronic banking facility that allows its customers to undertake online banking services anytime during the
day and at any place using the internet, for which the customers used to visit the banks in earlier days.

Disadvantages of E-Banking

1. Issues about security: Because the platform has various flaws and information may be obtained by hackers, digital banking is inherently
insecure. As a result, users may incur financial losses. It is also possible to steal financial information, resulting in a loss of cash.

2. Difficulty with transactions: During online banking, users may encounter difficulties such as transferred payments not being reflected,
payments failing, and other technical support concerns.

3. Accessing e-banking takes a long process: In certain countries, government banks provide online banking through the completion of an
internet banking form, after which you may obtain a security password to log in. An individual must first download the appropriate
banking app, after which all necessary credentials must be entered in order to properly log in.
4. Development and training: Banks must perform personnel training and development programs in order to provide high-quality online
services that improve the consumer experience. Training them to provide excellent services necessitates a significant financial
commitment.

5. Problems with Technology: If you don’t have a good internet connection, or if there are problems in the software, or if there is a power
outage, or if the servers go down, websites will crash, and you will definitely confront a slew of technical troubles. While you may
receive numerous sorts of customer service at the time, you may become disappointed sooner or later. In a genuine bank, though,
someone is constantly there to assist you.

6. Beginners will find it challenging: Getting the hang of e-banking might be tough for newcomers. Customers are generally hesitant to
explore all of the options and features provided on the website or app because they are afraid of losing money. If timely support is not
offered, new customers generally give up and return to traditional banking.

7. No Deposition of Cash: In e-banking services, there is no platform for cash deposits. This implies that the e-banking users cannot
deposit cash through that platform rather they must go to their respective bank branches or cash deposit machine centers (whether they
need instant services or not).

8. Internet failure and fraud: If the bank’s internet or server fails to connect, the E-banking user cannot use the banking software for any
purpose and if it connect slowly, the usage will also be slow (and may not give the user what he want at the moment). In the case of slow
connection, the user may not know whether his transactions were successful or not. This is because his e-banking services can be
interrupted by failure or instability in internet connection. E-banking users who fails to follow the bank security measures for e-banking
(this failure may be caused by negligence or ignorance) experience internet fraud. He may negligently: insert a weak password which is
traceable by internet hackers, give out his passwords, or remain connected online to his bank account without knowing it. All these can
give room to internet fraud which is disadvantageous to the e-banking user.