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Section 23: Renewal of license

Information Technology Act • Official Statutory Text & Practice Guide

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Act 2000
Section 22 All 90 Sections of Information Technology Act Section 24

Legal Commentary & Landmark Judgments: Section 23

Section 23 governs the renewal of Certifying Authority licenses, establishing strict statutory timelines, prescribed renewal fees, and ongoing regulatory compliance verifications required to maintain continuous operational authorization.

  • Mandatory Renewal Timelines: Requires license renewal applications to be submitted to the Controller at least forty-five days prior to the expiration of the active license period.
  • Statutory Renewal Fee Compliance: Mandates payment of the prescribed renewal fee alongside proof of continuous adherence to financial guarantee requirements.
  • Comprehensive Regulatory Re-Audit: Conditions renewal upon the CCA's verification that the licensee maintained unbroken compliance with the Act, rules, and security guidelines throughout the previous licensing cycle.
Key Landmark Precedents:
  • Union of India v. C. Krishna Reddy (2003) 12 SCC 627: Supreme Court affirmed that statutory renewal timelines are mandatory and failure to apply within the prescribed limitation terminates operational rights.
  • State of U.P. v. Maharaja Dharmander Prasad Singh (1989) 2 SCC 505: Supreme Court held that regulatory renewal decisions must adhere to principles of natural justice and cannot be refused on extraneous grounds.
  • K.C. Ninan v. Kerala State Electricity Board 2023 SCC OnLine SC 663: Supreme Court underscored that statutory licenses lapse automatically upon expiration if renewal requirements are not fulfilled in accordance with law.
Courtroom Practice & Strategic Litigation Guidance:

Counsel representing Certifying Authorities must track the forty-five-day renewal deadline under Section 23 with precision; late applications cannot be condoned administratively and necessitate a fresh, costly initial licensing proceeding.

Section 22 All 90 Sections of Information Technology Act Section 24