Section 24 IT Act: Procedure for grant or rejection of licence

Information Technology Act, 2000

Section 24 IT Act at a Glance

Section 24 IT Act sets the procedure for the Controller to grant or reject an application for a licence to issue electronic signature Certificates. The Controller cannot reject an application without giving the applicant a reasonable opportunity to present the applicant's case.

Section 24 IT Act Bare Act Text

24. Procedure for grant or rejection of licence.

The Controller may, on receipt of an application under sub-section (1) of section 21, after considering the documents accompanying the application and such other factors, as he deems fit, grant the licence or reject the application:

Provided that no application shall be rejected under this section unless the applicant has been given a reasonable opportunity of presenting his case.

Section 24 IT Act in Simple Words

Section 24 IT Act governs how the Controller decides an application for a licence to issue electronic signature Certificates. When the Controller receives an application made under Section 21(1) IT Act, the Controller examines the documents accompanying the application along with any other factors that the Controller considers fit.

Read with Section 21(2) IT Act, no licence may be issued under Section 21(1) IT Act unless the applicant meets the Central Government's prescribed requirements on qualification, expertise, manpower, financial resources, and other infrastructure facilities. After weighing the accompanying documents and relevant factors, the Controller may either grant the licence or reject the application.

The proviso to Section 24 IT Act places a mandatory safeguard on rejection. The Controller must not reject any application under Section 24 IT Act unless the applicant has first been given a reasonable opportunity of presenting the applicant's case.

When Section 24 IT Act Applies

  • Receipt by the Controller of a licence application made under Section 21(1) IT Act.
  • Consideration by the Controller of the documents accompanying the application.
  • Consideration of any other factors that the Controller considers fit.
  • Decision by the Controller to grant the licence or reject the application.
  • Before any rejection, a reasonable opportunity given to the applicant to present the applicant's case.

Example of Section 24 IT Act

Ranbir applies from Patiala under Section 21(1) IT Act to the Controller for a licence to issue electronic signature Certificates and encloses the documents required by Section 22 IT Act. While reviewing the file under Section 24 IT Act, the Controller notices gaps in the infrastructure details submitted with Ranbir's application. Under the proviso to Section 24 IT Act, the Controller cannot reject the application outright and first gives Ranbir a reasonable opportunity of presenting Ranbir's case. After hearing Ranbir and considering the submitted documents and relevant factors, the Controller passes an order granting or rejecting the application under Section 24 IT Act.

When Section 24 IT Act Does Not Apply

  • An application cannot be rejected under Section 24 IT Act unless the applicant has been given a reasonable opportunity of presenting the applicant's case.

FAQs on Section 24 IT Act

What is Section 24 IT Act?โ–ผ

Section 24 IT Act empowers the Controller to grant or reject an application made under Section 21(1) IT Act for a licence to issue electronic signature Certificates after considering the accompanying documents and other factors the Controller considers fit. Under the proviso to Section 24 IT Act, no application can be rejected unless the applicant is given a reasonable opportunity of presenting the applicant's case.

Can the Controller reject a licence application without giving the applicant an opportunity to present a case under Section 24 IT Act?โ–ผ

No. The proviso to Section 24 IT Act bars the Controller from rejecting any application unless the applicant has been given a reasonable opportunity of presenting the applicant's case.

Who decides whether to grant or reject a licence application under Section 24 IT Act?โ–ผ

The Controller. Upon receiving an application under Section 21(1) IT Act, the Controller considers the accompanying documents and other fit factors and either grants the licence or rejects the application.

Does Section 24 IT Act fix a time limit for the Controller to decide a licence application?โ–ผ

No. Section 24 IT Act does not set a statutory deadline within which the Controller must grant the licence or reject the application.

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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 ยท