Section 43 IT Act: Penalty and compensation for damage to computer, computer system, etc
Information Technology Act, 2000
Section 43 IT Act at a Glance
Section 43 IT Act makes any person who accesses, extracts data from, introduces a virus into, damages, or disrupts a computer, computer system, or network without permission liable to pay compensation to the affected person. Section 43 IT Act imposes civil liability.
Section 43 IT Act Bare Act Text
43. Penalty and compensation for damage to computer, computer system, etc.
If any person without permission of the owner or any other person who is in charge of a computer, computer system or computer network,—
(a) accesses or secures access to such computer, computer system or computer network or computer resource;
(b) downloads, copies or extracts any data, computer data base or information from such computer, computer system or computer network including information or data held or stored in any removable storage medium;
(c) introduces or causes to be introduced any computer contaminant or computer virus into any computer, computer system or computer network;
(d) damages or causes to be damaged any computer, computer system or computer network, data, computer data base or any other programmes residing in such computer, computer system or computer network;
(e) disrupts or causes disruption of any computer, computer system or computer network;
(f) denies or causes the denial of access to any person authorised to access any computer, computer system or computer network by any means;
(g) provides any assistance to any person to facilitate access to a computer, computer system or computer network in contravention of the provisions of this Act, rules or regulations made thereunder;
(h) charges the services availed of by a person to the account of another person by tampering with or manipulating any computer, computer system, or computer network;
(i) destroys, deletes or alters any information residing in a computer resource or diminishes its value or utility or affects it injuriously by any means;
(j) steal, conceal, destroys or alters or causes any person to steal, conceal, destroy or alter any computer source code used for a computer resource with an intention to cause damage;
he shall be liable to pay damages by way of compensation to the person so affected.
Explanation.—For the purposes of this section,—
(i) “computer contaminant” means any set of computer instructions that are designed—
(a) to modify, destroy, record, transmit data or programme residing within a computer, computer system or computer network; or
(b) by any means to usurp the normal operation of the computer, computer system, or computer network;
(ii) “computer data-base” means a representation of information, knowledge, facts, concepts or instructions in text, image, audio, video that are being prepared or have been prepared in a formalised manner or have been produced by a computer, computer system or computer network and are intended for use in a computer, computer system or computer network;
(iii) “computer virus” means any computer instruction, information, data or programme that destroys, damages, degrades or adversely affects the performance of a computer resource or attaches itself to another computer resource and operates when a programme, data or instruction is executed or some other event takes place in that computer resource;
(iv) “damage” means to destroy, alter, delete, add, modify or rearrange any computer resource by any means.
(v) “computer source code” means the listing of programme, computer commands, design and layout and programme analysis of computer resource in any form.
Amendments to this section
- Subs. by s. 21, ibid., for "Penalty" (w.e.f. 27-10-2009).
- Ins. by s. 21, ibid. (w.e.f. 27-10-2009).
- Ins. by Act 10 of 2009, s. 21 (w.e.f. 27-10-2009).
- Subs. by s. 21, ibid., for certain words (w.e.f. 27-10-2009).
Section 43 IT Act in Simple Words
Section 43 IT Act makes a person liable to pay damages by way of compensation, meaning money paid to make good the harm suffered, when that person commits listed acts without the permission of the owner or of any other person in charge of a computer, computer system, or computer network. Clauses (a) to (e) of Section 43 IT Act cover core acts of unauthorised intrusion and interference: (a) accessing or securing access to such computer, computer system, computer network, or computer resource; (b) downloading, copying, or extracting any data, computer database, or information from such computer, computer system, or computer network, including information or data held or stored in any removable storage medium; (c) introducing or causing the introduction of any computer contaminant or computer virus into any computer, computer system, or computer network; (d) damaging or causing damage to any computer, computer system, computer network, data, computer database, or other programmes residing in it; and (e) disrupting or causing disruption of any computer, computer system, or computer network.
Clauses (f) to (j) of Section 43 IT Act cover five further acts done without the permission of the owner or person in charge: (f) denying or causing the denial of access, by any means, to any person authorised to access any computer, computer system, or computer network; (g) providing any assistance to any person to facilitate access to a computer, computer system, or computer network in contravention of the IT Act or the rules or regulations made under the IT Act; (h) charging the services availed of by one person to another person's account by tampering with or manipulating any computer, computer system, or computer network; (i) destroying, deleting, or altering any information residing in a computer resource, or diminishing its value or utility or affecting it injuriously by any means; and (j) stealing, concealing, destroying, or altering, or causing any person to steal, conceal, destroy, or alter, any computer source code used for a computer resource with an intention to cause damage. Only Section 43(j) IT Act adds the requirement of an intention to cause damage.
A person who commits any act in clauses (a) to (j) of Section 43 IT Act is liable to pay damages by way of compensation to the person affected. Section 43 IT Act creates a civil liability to compensate the affected person, and the bare text sets no fixed figure or upper limit. Doing any act listed in Section 43 IT Act dishonestly or fraudulently is a criminal offence under Section 66 IT Act. Section 21 of Act 10 of 2009 amended Section 43 IT Act with effect from 27 October 2009, adding "and compensation" to its heading.
The Explanation to Section 43 IT Act defines five terms for Section 43 IT Act. Under Clause (i), 'computer contaminant' means any set of computer instructions designed either to modify, destroy, record, or transmit data or a programme residing within a computer, computer system, or computer network, or by any means to usurp the normal operation of the computer, computer system, or computer network. Under Clause (ii), 'computer data-base' means a representation of information, knowledge, facts, concepts, or instructions in text, image, audio, or video being prepared or prepared in a formalised manner, or produced by a computer, computer system, or computer network, and intended for use in a computer, computer system, or computer network. Under Clause (iii), 'computer virus' means any computer instruction, information, data, or programme that destroys, damages, degrades, or adversely affects the performance of a computer resource, or attaches itself to another computer resource and operates when a programme, data, or instruction is executed or some other event takes place in that computer resource.
Under Clause (iv) of the Explanation to Section 43 IT Act, 'damage' means to destroy, alter, delete, add, modify, or rearrange any computer resource by any means. Under Clause (v), 'computer source code' means the listing of programmes, computer commands, design and layout, and programme analysis of a computer resource in any form.
When Section 43 IT Act Applies
- A person acts without the permission of the owner or of any other person in charge of a computer, computer system, or computer network.
- The person commits an act under Section 43(a) to (f) IT Act: accessing the system or resource, downloading or extracting data (including data held or stored in removable storage), introducing a computer contaminant or virus, causing damage, disrupting the system, or denying access to an authorised user.
- Or the person commits an act under Section 43(g) to (j) IT Act: assisting access in contravention of the IT Act, rules, or regulations, charging one person's services to another's account by tampering, destroying or injuriously affecting information in a computer resource, or stealing, concealing, destroying, or altering computer source code.
- Where the act falls under Section 43(j) IT Act concerning computer source code, the person acts with an intention to cause damage.
- Another person is affected by the unauthorised act, making the person who acted without permission liable to pay damages by way of compensation to the affected person.
Example of Section 43 IT Act
When Section 43 IT Act Does Not Apply
- Acts done with the permission of the owner or of any other person in charge of the computer, computer system, or computer network fall outside Section 43 IT Act, which applies only where a person acts without such permission.
- Under Section 43(g) IT Act, providing assistance to facilitate access is covered only where the assistance is in contravention of the IT Act or the rules or regulations made under the IT Act.
- Under Section 43(j) IT Act, stealing, concealing, destroying, or altering computer source code (or causing any person to do so) is covered only where done with an intention to cause damage.
FAQs on Section 43 IT Act
What is Section 43 IT Act?▼
Section 43 IT Act covers ten kinds of acts done without the permission of the owner or person in charge of a computer, computer system, or computer network, including unauthorised access, copying data, introducing viruses, damaging programmes, disrupting operations, denying access, and misusing computer source code. Any person who commits one of these acts is under a civil liability to pay damages by way of compensation to the affected person.
Does Section 43 IT Act fix a maximum amount of compensation?▼
No. Section 43 IT Act states that the person is liable to pay damages by way of compensation to the affected person and specifies no fixed figure or upper cap.
Who decides a compensation claim under Section 43 IT Act?▼
An adjudicating officer, where the claim does not exceed ₹5 crore. Under Section 46(1A) IT Act, a claim for injury or damage above ₹5 crore goes to the competent court.
How does Section 43 IT Act relate to Section 66 IT Act?▼
Section 43 IT Act creates civil liability to pay compensation, while Section 66 IT Act creates a criminal offence for the same conduct when done dishonestly or fraudulently. Under Section 66 IT Act, doing any act listed in Section 43 IT Act dishonestly or fraudulently is an offence.
Does Section 43(b) IT Act cover copying data stored on a removable storage medium?▼
Yes. Under Section 43(b) IT Act, downloading, copying, or extracting data, a computer database, or information without permission includes information or data held or stored in any removable storage medium.
Is an intention to cause damage required for every clause of Section 43 IT Act?▼
No. Only Section 43(j) IT Act, covering the theft, concealment, destruction, or alteration of computer source code, requires an intention to cause damage. Clauses (a) to (i) of Section 43 IT Act apply whenever the listed act is done without the permission of the owner or person in charge.
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Sources: Bare Act Text, Information Technology Act, 2000 ·