Section Text
1
[43A. Compensation for failure to protect data.--Where a body corporate, possessing, dealing or
handling any sensitive personal data or information in a computer resource which it owns, controls or
operates, is negligent in implementing and maintaining reasonable security practices and procedures and
thereby causes wrongful loss or wrongful gain to any person, such body corporate shall be liable to pay
damages by way of compensation to the person so affected.
Explanation.--For the purposes of this section,--
(i) "body corporate" means any company and includes a firm, sole proprietorship or other
association of individuals engaged in commercial or professional activities;
(ii) "reasonable security practices and procedures" means security practices and procedures
designed to protect such information from unauthorised access, damage, use, modification, disclosure
or impairment, as may be specified in an agreement between the parties or as may be specified in any
law for the time being in force and in the absence of such agreement or any law, such reasonable
security practices and procedures, as may be prescribed by the Central Government in consultation
with such professional bodies or associations as it may deem fit;
(iii) "sensitive personal data or information" means such personal information as may be
prescribed by the Central Government in consultation with such professional bodies or associations as
it may deem fit.]
1 Ins. by s. 22, ibid. (w.e.f. 27-10-2009).