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Section 21: License to issue Digital Signature Certificates

Information Technology Act • Official Statutory Text & Practice Guide

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Act 2000
Section 20 All 90 Sections of Information Technology Act Section 22

Legal Commentary & Landmark Judgments: Section 21

Section 21 prohibits any person from issuing a Digital Signature Certificate without a valid license granted by the Controller, establishing a mandatory statutory licensing requirement backed by administrative penalties and criminal prosecution for unauthorized certification.

  • Mandatory Statutory Licensing: Barring statutory exceptions, prohibits any corporate entity or individual from issuing digital signature certificates to the public without holding a valid license under Section 24.
  • Non-Transferable Authority: Requires that the license is personal to the licensee and cannot be assigned, transferred, or sub-licensed without express statutory approval.
  • Sanction for Unauthorized Certification: Renders digital certificates issued by unlicensed entities legally void for statutory purposes and exposes the issuer to penal prosecution under Chapter XI.
Key Landmark Precedents:
  • Modern Dental College & Research Centre v. State of M.P. (2016) 7 SCC 353: Constitution Bench held that mandatory statutory licensing in sectors involving public trust is a constitutionally valid regulatory measure under Article 19(6).
  • Internet and Mobile Association of India v. RBI (2020) 10 SCC 274: Supreme Court affirmed that entities providing critical digital infrastructure may be subjected to strict pre-operational licensing mandates to protect public interest.
  • Dharampal Satyapal Ltd. v. Deputy Commissioner of Central Excise (2015) 8 SCC 519: Supreme Court emphasized that statutory prohibitions against operating without an accredited license must be strictly enforced.
Courtroom Practice & Strategic Litigation Guidance:

In tender disputes requiring digital submissions, confirm that all vendor signature certificates emanate from an entity licensed under Section 21; certificates from unaccredited private providers justify immediate disqualification of the bid.

Section 20 All 90 Sections of Information Technology Act Section 22