What are the benefits OF using Secure Virtual Sign over Aadhaar eSign or ClickWrap?
"Why Secure Virtual Sign is better than clickwrap – Click-wraps don’t offer trusted third party audit-trail and OTP verification supporting the authentication – making it impossible to ascertain the identity of the party accepting the terms and conditions. These create legal and business risk and it can be a difficult to prove them before courts. When you should use Secure Virtual Sign over Aadhaar eSign – Secure Virtual Sign is a capable backup to Aadhaar eSign in cases where: a) Signer’s mobile number is not linked to Aadhaar b) You want a cheaper alternative for your contracts c) The user refuses to use Aadhaar eSign to authenticate the document, and prefers a non-Aadhaar mechanism. Leegality’s Secure Virtual Signature allows execution of documents, securely and quickly. "
How can I sign my organization's documents using Secure Virtual Sign?
"In case of physical signatures, the authorised signatory of the organisation uses their own signature to sign a document. The same applies for Secure Virtual Sign, where the authorised signatory can authenticate the document on behalf of the organisation. Additionally,even though not required under law, you can choose to use the digital stamp/seal of your company when you electronically authenticate your documents through Leegality. This digital stamp/seal will be imprinted as a watermark on all the pages of the document along with the appearance of the signature. "
What is an audit trail?
Audit trail is an authenticated document containing the logs relating to the electronic authentication of the document. It contains details like the timestamp of the transactions, the public IP of the signers, location of the signers during the signs, etc. The audit trail is digitally signed by our servers, rendering it a Secure Electronic Record under the Indian Evidence Act and making it easy to produce as evidence in any court of law.
Are Secure Virtual Signs legal? Can I execute my contract through a Secure Virtual Sign?
"Yes, you can execute most contracts through Secure Virtual Signatures. The only exception is contracts which – by law – explicitly require “signatures”. However in the ordinary course of things, a contract doesn’t need a ‘signature’ to be valid and enforceable – it merely requires “any act or omission” that “conveys acceptance” in order to be validly executed. Section 10A of the Information Technology Act, 2000 also positively recognizes e- contracts: “Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances as the case may be, are expressed in electronic form or by means of an electronic records, such contract shall not be deemed to be unenforceable solely on the ground that such electronic form or means was used for that purpose” (Emphasis supplied). Case Law - The Supreme Court of India in the case of Trimex International FZE, Dubai v. Vedanta Aluminum Limited,(2010)3SCC1 has upheld contract formation by way of mere emails:A signature is nothing but a process that ensures: authentication of the identity of the signer, non-repudiation (un-deniability of a signature), and integrity of the content (ensured by exchanging a copy/relying on a forensic document examiner). Leegality’s Secure Virtual Sign provides an alternative to hand-signature by ensuring all criteria are met through the following steps: a) OTP verification of the phone number/email ID of the signer; b) Time-stamp of the electronic authentication; c) Audit trail generated as an unbiased third-party; d) Express consent to sign an electronic document; e) Audit trail and document signed by Leegality’s Digital Signature to make it tamper-evident; and f) Capture of live face and GPS coordinates(optional). "
What documents can be Signed through Secure Virtual Sign?
"Electronicauthentication by way of Secure Virtual Signature is sufficient to enter into most contracts or approve the contents of most documents as per Section 10A of the Information Technology Act. Routine documents such as employee contracts, approval letters, onboarding forms, non-disclosure agreements, and HR documents can be executed using Secure Virtual Sign. However, if a document – by law – explicitly requires a signature (and not just an acceptance) then the Secure Virtual Signature cannot be used. Some documents have been expressly excluded from the application of the IT Act and therefore cannot be electronically authenticated/signed. These are: a) A negotiable instrument (other than a cheque) as defined in section 13 of the Negotiable Instrument Act,1881. b) Power-of-attorney as defined in section 1A of the Powers-of-Attorney Act,1882. c) A trust as defined in section 3 of the Indian Trust Act, 1882. d) A will as defined in clause (h) of section 2 of the Indian Succession Act,1925, including any other testamentary disposition by whatever name called. e) Any contract for the sale or conveyance of immovable property or any interest in such property. "
What is a Secure Virtual Sign?
Secure Virtual Signature is a non-Aadhaar electronic authentication mechanism. Thisisareflectionoftheuser’sconsentandintentiontoapprovethecontentsofan electronic document. This approval appears on the document by way of a user generated virtual sign or by the user choosing a template mark, along with the time-stampandthechosenlocation.
What are the benefits of using Aadhaar eSign based digital signatures over other alternatives?
"Other forms of digital authentication modes, including the ones used in Click-wrap or other unsecure electronic signatures are not expressly accepted as valid methods of signing under the law. If used, they create huge business risk and it can be a very hard process to prove them in front of adjudicatory authorities, leading to huge transactional losses. Aadhaar eSign is thus a safe, secure, convenient and legally acceptable method of signing documents digitally. Infact, Aadhaar based digital signatures are even more legally secure than physical signatures due to the presumptions existing in favour of the authenticity and correctness of digital signatures under Section 85A, 85B & 85 C of the Indian Evidence Act, 1872, as discussed above. For any more queries or doubts, please reach out to us at contact@leegality.com. We will be more than happy to help! "
How can I sign organisational documents using Aadhaar eSign?
"In case of physical signatures, the authorised signatory of the organisation uses his own signature to sign a document. The same applies for Aadhaar eSign, where the authorised signatory can sign the document on behalf of the organisation. Additionally, even though not required under law, you can also choose to use the digital stamp/seal of your company when you sign your documents through Leegality. This digital stamp/seal will be imprinted as a watermark on all the pages of the signed document along with other signature information. "
What is an audit trail?
Audit trail is an authenticated document containing the logs relating to the signing transactions on the document. It contains details like the Timestamp of the transactions, the Public IP of the Signers, location of the signers during the signs, etc. The audit trail is digitally signed by our servers and helps improve trust in the documents signed through our platform. We continually improve the standards used to issue Audit Trails of documents and use Industry Best Practices to ensure reliability and trust in documents signed through our platform.
Are Aadhar eSigns admissible in court?
"Yes, Aadhaar eSign based digital signatures are fully admissible in court. As per Section 67A of the Indian Evidence Act, 1872, in cases of secure electronic signatures such as Aadhaar eSign, one does not need to prove that the authenticity of the digital signature of the subscriber. Under Section 85C of the Indian Evidence Act, 1872, it is presumed that the information contained in a digital signature certificate is correct. Under Section 85B (2) of the Indian Evidence Act, 1872, it is presumed that a secure digital signature is affixed by subscriber with the intention of signing or approving the electronic record. Under sub-section (1), the integrity of a secure electronic record is also presumed. As per Section 47A of the Indian Evidence Act 1872, the opinion of the issuing Certifying Authority is a relevant fact for the court to make an opinion as to the digital signature of the person. Both Leegality and its Certifying Authority- (n)Code Solutions maintain full transactional logs to assist and certify any transactions carried out through us for adjudicative purposes. The manner and procedure of how the same have to be submitted is laid down under Section 65A and 65B of the Indian Evidence Act, 1872. Thus, all documents digitally signed through Aadhaar eSign using our platform are completely admissible and in cases of disputes, both Leegality and our Certifying Authority- (n) Code Solutions can issue any kind of required Certificates. "
How does Leegality provide Aadhar eSign?
Leegality’s parent company- “Grey Swift Private Limited’ is a registered Application Service Provider with NSDL e-Governance Infrastructure Limited , which is a registered Certifying Authority and one of the 4 licensed eSign Service Providers in India. All our Aadhaar eKYC requests and digital signing related requests are routed through them. As per the on-boarding and authentication guidelines issued by the Controller of Certifying Authorities, Ministry of Electronics and Information Technology, Govt. of India, Application Service Providers such as us can legally provide the Aadhaar eSign services to the market.
What is Aadhar eSign exactly?
Aadhaar eSign is a method to issue digital signatures. Aadhaar authentication is just used for eKYC purposes, based on which a digital signatures certificate is issued in the name of the respective Aadhaar holder. To simplify further, Aadhaar authentication and eKYC is handled by UIDAI independently. UIDAI issues the eKYC data to the Certifying Authority, which then uses that eKYC data to fill up a special digital signature form created for this purpose and issues a digital signature certificate for every request. The digital signatures issued are done under the root certificate of the Root Certificate Authority of India. To know further check out, http://cca.gov.in/eSign.html
As per the prevailing laws, how can I sign a document digitally in India?
"Section 3 of the Information Technology Act provides that authentication of electronic records can be done by affixing of digital signatures. Section 3A provides for the kinds of electronic signatures that can be used to authenticate electronic records and provides the power to Central Government to issue Notifications under the same. Aadhaar eSign gains legal validity out of the notification mentioned in Question 1 issued by the Central Government under the powers given to under Section 3A. Section 5 of IT Act also provides digital signatures the legal validity equivalent to that of physical signatures. Further Section 85B (2)(a) of the Indian Evidence Act, 1872 says that in proceedings involving secure digital signatures (such as Aadhaar eSign), the court shall presume that the digital signature has been affixed with the intention of signing and approving it unless the otherwise can be proved. Section 85A and 85C of the Indian Evidence Act, 1872 also make further presumptions in favour of digitally signed agreements and the information contained in a digitally signed certificate. Therefore, digitally signing a document is a completely legally compliant manner of signing a document and Aadhaar eSign can thus safely be used to sign any document except for those mentioned in Question 2. "
What is the evidentiary status of digital documents in India?
Section 4 of the IT Act provides that any document which by law needs to be in written, typewritten or printed form, the conditions will be deemed to have been satisfied if the document has been provided in an electronic form. Under the Indian Evidence Act, the definition of the word evidence includes "all documents including electronic records… " and the meaning of “electronic records” is the same as under the IT Act and would include any kind of digital documents as well.
How is stamp duty paid for such digital agreements?
"Leegality makes it possible to validly pay stamp duty for digital instruments. The user can create a Stamp Request by filling a simple form. We procure the Stamp Paper/eStamp Certificate as per the provided details, print a legend on the paper based on the details, and upload a scan of the same-corresponding to the request. When the user uploads his document, it gets merged with the scan and the Sr. No. of the Stamp Paper/eStamp Certificate is printed on every page of the document. The user can then continue to sign and send the document. The original Stamp Paper/eStamp Certificate is delivered to the user. Stamp Duty can also be paid for counterpart copies of agreements, so that all parties have the original Stamp Paper/eStamp Certificate. "
For loan agreements, is there a cap on ticket size for which Aadhaar eSign (Digital Signature) can be done?
"The Reserve Bank of India, in its Master Direction - Know Your Customer (KYC) Direction, 2016 (as updated in August 2019) has limited term loans sanctioned using OTP based e-KYC(in non-face-to-face mode)to not exceed INR 60,000 in a year. This cap is for KYC purposes and not applicable to eSigning of Agreements. The Information Technology Act and other applicable guidelines and regulations by the ‘Controller of Certifying Authorities’ (sector regulator for Digital Signatures) do not prescribe any cap on the ticket size for which digital agreements can be done. "
Can I execute my agreement through Aadhaar eSign?
"Yes. Section 10 A of the IT Act reads as- “Validity of contracts formed through electronic means- Where in a contract formation, the communication of proposals, the acceptance of proposals, the revocation of proposals and acceptances, as the case may be, are expressed in electronic form or by means of an electronic record, such contract shall not be deemed to be unenforceable solely on theground that such electronic form or means was used for that purpose.” Further, Section 85A of the Indian Evidence Act, 1972, reads as “The Court shall presume that every electronic record purporting to be an agreement containing the digital signatures of the parties was so concluded by affixing the digital signature of the parties” . “ As already discussed above, Aadhaar eSign is a prescribed and completely legally compliant manner of digital signatures under the law and thus all agreements executed with Aadhaar eSign are completely legally acceptable. "
What documents can be signed through Aadhaar eSign?
"Section 5 the IT Act reads as, “Where any law provides that information or any other matter shall be authenticated by affixing the signature or any document should be signed or bear the signature of any person then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied, if such information or matter is authenticated by means of digital signature affixed in such manner as may be prescribed by the Central Government”. But Section 1(4) of the IT Act lays down- “Nothing in this Act shall apply to documents or transactions specified in the First Schedule by way of addition or deletion of entries thereto.” Therefore, Aadhaar eSign, which is a prescribed method of digital signature, can be used to validly sign and authenticate all documents except for those expressly excluded from the application of the IT Act under the First Schedule. These excluded documents under the First Schedule are : 1. A negotiable instrument (other than a cheque) as defined in section 13 of the Negotiable Instrument Act, 1881 (26 of 1881). 2. power-of-attorney as defined in section 1A of the Powers-of-Attorney Act, 1882 (7 of 1882). 3. A trust as defined in section 3 of the Indian Trust Act, 1882 (2 of 1882). 4. A will as defined in clause (h) of section 2 of the Indian Succession Act, 1925 (39 of 1925), including any other testamentary disposition by whatever name called. 5. Any contract for the sale or conveyance of immovable property or any interest in such property. "
What is the legality of Aadhaar eSign?
"Aadhaar eSign based digital signatures being used by Leegality are completely legally accepted and secure manner of electronically signing documents, under effect of Gazette Notification No. 2015 Jan -GSR 61(E) Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015. Aadhaar eSigns are recognised as an accepted method of secure electronic signatures as part of the Second Schedule of the Information Technology Act, 2010 (IT Act). The IT Act recognises secure digital signatures such as Aadhaar eSign as having legal validity equivalent to that of physical signatures. Infact, Aadhaar eSigns are a more legally and technologically secure way of signing documents than other alternative techniques. Aadhaar eSigns work under the regulatory framework set up by Controller of Certifying Authorities, Ministry of Electronics and Information Technology, Government of India. Supreme Court’s Order The Supreme Court’s judgement of 26 September 2018 held that use of Aadhaar authentication under Section 57 of The Aadhaar Act 2016 is unconstitutional in cases where it is not permitted by law. Further, the Central Government approved ‘The Aadhaar and other Laws (Amendment) Ordinance, 2019’ (dated 2 March 2019). This amendment to the Aadhaar Act omitted Section 57 and amended Section 4, explicitly allowing Aadhaar authentication if permitted by any other law (in line with the Supreme Court’s Order). In both these cases, Aadhaar authentication based eSign continues to be valid, as it is permitted under the Information Technology Act 2000. On 3 May 2019, the sector regulator – Controller of Certifying Authorities (CCA) has issued revised e-authentication guidelines explicitly recognising two modes of user verification for eSign -Online Aadhaar eKYC authentication and the Offline Aadhaar eKYC verification. "
How is Stamp Duty to be paid?
"Stamp Duty can be paid by any of the following means: a) Non-Judicial Stamp paper/e-Stamp paper; b) Adhesive stamps; and c) Franking Not all states provide all the above options. At Leegality, we provide an Instant Stamping Solution for your electronic documents; we procure the Stamp paper/e-Stamp certificates on your behalf as an authorized agent, through licensed stamp vendors. "
How is Stamp Duty calculated for a particular instrument? How much Stamp Duty should be paid?
Please consult a local advocate as this would change from state to state. Leegality does not and cannot provide legal advice.
Which State should the Stamp Duty be paid IN?
Please consult a local advocate. Leegality does not and cannot provide legal advice.
When does Stamp Duty become payable?
This depends on the state the Stamp Duty is payable in. For instance, in Maharashtra, all stamp-able instruments executed within the state shall be stamped before or at the time of execution or immediately after or on the next working day following the day of execution. Usually, if the instrument is only executed out of the state it may be stamped within three months after it has been first received in Maharashtra.
What are the consequences of not paying the appropriate Stamp Duty?
"Any or all of these consequences may follow if a stamp-able document (including electronic document) is not stamped or not appropriately stamped– 1. It cannot be admitted in evidence before any person having by law (such as courts), or by consent of parties (such as an arbitrator) authority to receive evidence; 2. It cannot be acted upon, registered or authenticated by a public officer (such as for registration); 3. If presented in evidence or to a public offer, these documents can also be impounded; 4. Stamp authorities may levy a penalty which is generally an ad valorem rate, and the maximum penalty could range from between twice the deficient stamp duty to up to ten times; 5. Intentional evasion of stamp duty could also attract imprisonment, between 1 to 6 months; and 6. Authorities may enter upon any premises or seek access from any public officer having custody of registers, books, records, documents, and may seize and impound unstamped documents (including electronic documents). "
What is meant by execution of instruments?
" “Executed” and “Execution” used with reference to instruments mean “signed” and “signature”. For electronic records, this means that documents that are ‘signed’ as per the Information Technology Act 2000 will also have to be stamped. However, some states such as Maharashtra and Delhi have gone a step further by deeming that if an electronic record can be attributed to a person (directly or indirectly), it will mean that it is ‘signed’. Therefore, even a ‘signature’ may not be required for an ‘instrument’ to require stamping. "
What is a ‘document’ under the stamp laws?
"A document means any matter expressed or described upon any substance by means of letters, figures or marks or by more than any of those means intended to be used or which may be used for the purpose of recording that matter. This wide definition subsumes written documents, words lithographed or photographed prints, maps or plans, inscription on a metal plate or stone; or even a caricature. This definition may also cover “electronic records” as defined in Information Technology Act i.e., data, record, image, sound that is generated, stored, received or sent in an electronic form. This has been made clear by way of an explanation by some state stamp laws such as Maharashtra and Karnataka. "
What is an ‘instrument’ under the stamp laws?
"Note, the stamp duty is payable on each ‘instrument’ and not on the whole transaction. The definition of the term ‘instrument’ is very wide. Instrument means any document by which any right or liability is, or purports to be created, transferred, limited, extended, extinguished or recorded. While Stamp Duty on certain instruments (such as bill of exchange, cheque etc.) is charged under the Indian Stamp Act 1899 other instruments are charged stamp duty under the respective state stamp Acts (such as agreements, award, affidavit etc.). "
What is Stamp Duty?
Stamp Duty is a tax to be paid on execution of an instrument listed in the Indian Stamp Act, 1899 or respective state stamp acts (such as The Maharashtra Stamp Act and The Karnataka Stamp Act).
[With Leegality] I'm enabling my customer to just put one signature rather than putting 10 to 12 signatures. I am also unlocking the productivity and time of my wealth managers. Finally, from a sustainability perspective – we are helping mother nature by not wasting paper.
L Murty
Deputy CEO, Dvara KGFS
The seamless process offered by Leegality for the digital execution of agreements is commendable. It is easy to use and saves time