Section 13 IT Act: Time and place of despatch and receipt of electronic record

Information Technology Act, 2000

Section 13 IT Act at a Glance

Section 13 IT Act sets the default rules for when and where an electronic record is despatched and received unless the originator and the addressee agree otherwise.

Section 13 IT Act Bare Act Text

13. Time and place of despatch and receipt of electronic record.

(1) Save as otherwise agreed to between the originator and the addressee, the despatch of an electronic record occurs when it enters a computer resource outside the control of the originator.

(2) Save as otherwise agreed between the originator and the addressee, the time of receipt of an electronic record shall be determined as follows, namely:—

(a) if the addressee has designated a computer resource for the purpose of receiving electronic records,—

(i) receipt occurs at the time when the electronic record enters the designated computer resource; or

(ii) if the electronic record is sent to a computer resource of the addressee that is not the designated computer resource, receipt occurs at the time when the electronic record is retrieved by the addressee;

(b) if the addressee has not designated a computer resource along with specified timings, if any, receipt occurs when the electronic record enters the computer resource of the addressee.

(3) Save as otherwise agreed to between the originator and the addressee, an electronic record is deemed to be despatched at the place where the originator has his place of business, and is deemed to be received at the place where the addressee has his place of business.

(4) The provisions of sub-section (2) shall apply notwithstanding that the place where the computer resource is located may be different from the place where the electronic record is deemed to have been received under sub-section (3).

(5) For the purposes of this section,—

(a) if the originator or the addressee has more than one place of business, the principal place of business, shall be the place of business;

(b) if the originator or the addressee does not have a place of business, his usual place of residence shall be deemed to be the place of business;

(c) “usual place of residence”, in relation to a body corporate, means the place where it is registered.

Section 13 IT Act in Simple Words

Section 13 IT Act fixes the time and place of despatch and receipt of an electronic record whenever the originator and the addressee have not agreed on different terms. Section 2 IT Act defines terms such as "computer resource" and "electronic record", while Section 12 IT Act covers acknowledgment of receipt and Section 14 IT Act covers secure electronic records. Under Section 13(1) IT Act, unless the originator and the addressee agree otherwise, despatch of an electronic record occurs when the electronic record enters a computer resource outside the control of the originator.

Section 13(2) IT Act sets the time of receipt, again unless the originator and the addressee agree otherwise. Under Section 13(2)(a) IT Act, where the addressee has designated a computer resource for receiving electronic records, clause (i) states that receipt occurs when the electronic record enters that designated computer resource, and clause (ii) states that if the electronic record is sent to a different computer resource of the addressee, receipt occurs only when the addressee retrieves the electronic record. Under Section 13(2)(b) IT Act, if the addressee has not designated a computer resource along with specified timings, if any, receipt occurs when the electronic record enters the computer resource of the addressee.

Section 13(3) IT Act sets the legal place of despatch and receipt unless the parties agree otherwise: an electronic record is deemed (treated by law as) despatched at the originator's place of business, and deemed received at the addressee's place of business. Under Section 13(4) IT Act, the rules on time of receipt in Section 13(2) IT Act apply notwithstanding (even if) the physical location of the computer resource differs from the deemed place of receipt under Section 13(3) IT Act.

Section 13(5) IT Act explains how to identify a party's place of business for Section 13 IT Act. Under clause (a), if the originator or the addressee has more than one place of business, the principal place of business counts as the place of business. Under clause (b), if the originator or the addressee has no place of business, that party's usual place of residence is deemed to be the place of business. Under clause (c), for a body corporate, "usual place of residence" means the place where the body corporate is registered.

When Section 13 IT Act Applies

  • Party autonomy under Section 13(1), 13(2), and 13(3) IT Act: the statutory rules on time of despatch, time of receipt, and place of despatch and receipt apply save as otherwise agreed between the originator and the addressee.
  • Time of despatch under Section 13(1) IT Act: despatch occurs when the electronic record enters a computer resource outside the originator's control.
  • Time of receipt with a designated computer resource under Section 13(2)(a) IT Act: receipt occurs upon entry into the designated computer resource, or upon retrieval by the addressee if sent to a non-designated computer resource of the addressee.
  • Time of receipt without a designated computer resource under Section 13(2)(b) IT Act: where no computer resource along with specified timings, if any, is designated, receipt occurs when the electronic record enters the addressee's computer resource.
  • Deemed place rules under Section 13(3), 13(4), and 13(5) IT Act: despatch and receipt are deemed to occur at each party's place of business (principal place if multiple, usual place of residence if none, or place of registration for a body corporate), regardless of where the computer resource is located.

Example of Section 13 IT Act

Yogesh, whose sole place of business is in Kolkata, sends an electronic purchase notice to Malini, whose sole place of business is in Ahmedabad, with no special agreement on despatch or receipt. Malini has designated an official orders computer resource for receiving electronic records, yet Yogesh sends the notice at 10:00 am to a secondary computer resource of Malini's whose server sits in Visakhapatnam, and Malini retrieves the notice at 4:00 pm. Under Section 13(1) IT Act, despatch occurred when the notice entered a computer resource outside Yogesh's control, and under Section 13(2)(a)(ii) and Section 13(4) IT Act, receipt occurred at 4:00 pm upon Malini's retrieval even though the computer resource is located outside Ahmedabad. Under Section 13(3) IT Act, the electronic record is deemed despatched in Kolkata and deemed received in Ahmedabad.

When Section 13 IT Act Does Not Apply

  • Contrary agreement between parties: under Section 13(1), Section 13(2), and Section 13(3) IT Act, the statutory rules on time of despatch, time of receipt, and place of despatch and receipt do not apply to the extent the originator and the addressee have agreed otherwise.
  • Entry into a non-designated computer resource before retrieval: under Section 13(2)(a)(ii) IT Act, where the addressee has designated a computer resource for receiving electronic records, entry into another computer resource of the addressee does not constitute receipt until the addressee retrieves the electronic record.
  • Usual place of residence rule when a party has a place of business: under Section 13(5)(b) IT Act, a party's usual place of residence is deemed to be the place of business only when the originator or the addressee does not have a place of business.

FAQs on Section 13 IT Act

What is Section 13 IT Act?▼

Section 13 IT Act determines the exact time and deemed place of despatch and receipt of an electronic record. Its rules apply whenever the originator and the addressee have not agreed on different terms.

When does despatch of an electronic record occur under Section 13(1) IT Act?▼

When the electronic record enters a computer resource outside the control of the originator. The originator and the addressee may, however, agree on a different rule under Section 13(1) IT Act.

What if an electronic record is sent to a computer resource other than the one designated by the addressee under Section 13(2)(a) IT Act?▼

Receipt occurs when the addressee retrieves the electronic record. Under Section 13(2)(a)(ii) IT Act, mere entry into a computer resource of the addressee that is not the designated computer resource does not count as receipt.

Does the physical location of a server change the deemed place of receipt under Section 13 IT Act?▼

No. Under Section 13(3) IT Act, an electronic record is deemed received at the addressee's place of business unless agreed otherwise. Section 13(4) IT Act confirms that the receipt timing rules in Section 13(2) IT Act apply even when the computer resource is located elsewhere.

Which place counts under Section 13(5) IT Act if a business has offices in several cities?▼

The principal place of business. Under Section 13(5)(a) IT Act, where the originator or the addressee has more than one place of business, the principal place of business is treated as the place of business.

What is the place of business under Section 13(5) IT Act if a party has no place of business?▼

The party's usual place of residence. Under Section 13(5)(b) and Section 13(5)(c) IT Act, the usual place of residence is deemed to be the place of business, and for a body corporate that means the place where the body corporate is registered.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Information Technology Act, 2000 ·