Section 25 IT Act: Suspension of licence

Information Technology Act, 2000

Section 25 IT Act at a Glance

Section 25 IT Act lets the Controller revoke or suspend a Certifying Authority's licence on specified grounds. The Certifying Authority gets a show cause opportunity before revocation or any suspension exceeding 10 days, and cannot issue electronic signature Certificates while suspended.

Section 25 IT Act Bare Act Text

25. Suspension of licence.
(1) The Controller may, if he is satisfied after making such inquiry, as he may think fit, that a Certifying Authority has—
(a) made a statement in, or in relation to, the application for the issue or renewal of the licence, which is incorrect or false in material particulars;
(b) failed to comply with the terms and conditions subject to which the licence was granted;
(c) failed to maintain the procedures and standards specified in section 30;
(d) contravened any provisions of this Act, rule, regulation or order made thereunder,
revoke the licence:
Provided that no licence shall be revoked unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed revocation.
(2) The Controller may, if he has reasonable cause to believe that there is any ground for revoking a licence under sub-section (1), by order suspend such licence pending the completion of any enquiry ordered by him:
Provided that no licence shall be suspended for a period exceeding ten days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension.
(3) No Certifying Authority whose licence has been suspended shall issue any electronic signature Certificate during such suspension.

Amendments to this section

Subs. by notification No. S.O. 1015(E) (w.e.f. 19-9-2002).
Subs. by Act 10 of 2009, s. 2, for "digital signature" (w.e.f. 27-10-2009).

Section 25 IT Act in Simple Words

Section 25 IT Act empowers the Controller to revoke or suspend the licence of a Certifying Authority, despite the section heading mentioning only suspension. Under Section 25(1) IT Act, the Controller may conduct such inquiry as the Controller thinks fit and, if satisfied that one of four grounds exists, revoke the licence.

Those four grounds in Section 25(1) IT Act are: (a) making a statement in, or in relation to, an application for the issue or renewal of the licence that is incorrect or false in material particulars; (b) failing to comply with the terms and conditions subject to which the licence was granted; (c) failing to maintain the procedures and standards specified in Section 30 IT Act; or (d) contravening any provision of the IT Act or any rule, regulation, or order made under the IT Act. Under the proviso to Section 25(1) IT Act, no licence may be revoked unless the Certifying Authority has first been given a reasonable opportunity of showing cause (explaining why the proposed action should not be taken) against the proposed revocation.

Under Section 25(2) IT Act, if the Controller has reasonable cause to believe that a ground for revocation under Section 25(1) IT Act exists, the Controller may pass an order suspending the licence pending the completion of any enquiry ordered by the Controller. Under the proviso to Section 25(2) IT Act, no licence may be suspended for more than 10 days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension.

Under Section 25(3) IT Act, a Certifying Authority whose licence has been suspended must not issue any electronic signature Certificate during the suspension period. Section 25 IT Act was amended by notification No. S.O. 1015(E) from 19 September 2002 and by Act 10 of 2009 from 27 October 2009.

When Section 25 IT Act Applies

Satisfaction of the Controller, after making such inquiry as the Controller thinks fit, that a ground in Section 25(1) IT Act exists for revocation.
Existence of at least one ground: a materially incorrect or false statement relating to a licence issue or renewal application, breach of licence terms, failure to maintain procedures and standards under Section 30 IT Act, or contravention of the IT Act, rules, regulations, or orders.
Reasonable opportunity given to the Certifying Authority to show cause before any licence revocation.
Reasonable cause for the Controller to believe a revocation ground exists to order interim suspension pending an enquiry, with a show cause opportunity required before suspension exceeds 10 days.
Complete bar on the Certifying Authority issuing any electronic signature Certificate during the period of suspension.

Example of Section 25 IT Act

Tarun operates as a licensed Certifying Authority in Sambalpur. Having reasonable cause to believe that Tarun failed to maintain the security procedures specified in Section 30 IT Act, the Controller orders an enquiry and passes an order under Section 25(2) IT Act suspending Tarun's licence for 7 days pending the enquiry. Under Section 25(3) IT Act, Tarun stops issuing electronic signature Certificates immediately during the suspension, and before extending the suspension beyond 10 days or revoking the licence under Section 25(1)(c) IT Act, the Controller gives Tarun a reasonable opportunity of showing cause. After completing the inquiry and considering Tarun's reply, the Controller decides whether Tarun's failure is established and whether to revoke the licence.

When Section 25 IT Act Does Not Apply

A licence cannot be revoked under Section 25(1) IT Act unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed revocation.
A licence cannot be suspended under Section 25(2) IT Act for a period exceeding 10 days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension.

FAQs on Section 25 IT Act

What is Section 25 IT Act?▼

Section 25 IT Act gives the Controller power to revoke a Certifying Authority's licence after inquiry on four statutory grounds, and to suspend a licence pending an enquiry where there is reasonable cause to believe a revocation ground exists. Section 25 IT Act requires a show cause opportunity before revocation or before any suspension exceeding 10 days, and bars the Certifying Authority from issuing electronic signature Certificates while suspended.

Can a licence suspension under Section 25 IT Act exceed 10 days without a show cause opportunity?▼

No. Under the proviso to Section 25(2) IT Act, no licence may be suspended for a period exceeding 10 days unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed suspension.

Can the Controller revoke a licence without giving a show cause opportunity under Section 25 IT Act?▼

No. The proviso to Section 25(1) IT Act prohibits revoking any licence unless the Certifying Authority has been given a reasonable opportunity of showing cause against the proposed revocation.

Can a Certifying Authority issue electronic signature Certificates while suspended under Section 25 IT Act?▼

No. Section 25(3) IT Act bars a Certifying Authority whose licence has been suspended from issuing any electronic signature Certificate during the suspension.

Does a minor mistake in a licence application justify revocation under Section 25 IT Act?▼

No, not unless the statement is incorrect or false in material particulars. Section 25(1)(a) IT Act applies where a Certifying Authority made an incorrect or false statement in material particulars in, or in relation to, the application for issue or renewal of the licence.

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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 ·