While adjudicating on the quantum of compensation under the Information Technology Act, 2000, which one of the following factors is IRRELEVANT?

Correct option is A

The correct answer is (a) Care and precautions taken in preventing damage to data.

Explanation:

The factors that an Adjudicating Officer must consider when determining the quantum of compensation are explicitly laid down in Section 47 of the Information Technology Act, 2000.

According to this section, the officer shall have due regard to the following three factors:

1. Gain of Unfair Advantage: The amount of gain or unfair advantage, wherever quantifiable, made as a result of the default. (Option b)
2. Amount of Loss: The amount of loss caused to any person as a result of the default. (Option c)
3. Repetitive Nature: The repetitive nature of the default. (Option d)

Option (a) is irrelevant because the Act does not list "care and precautions" as a factor for adjudicating the quantum under Section 47. While "reasonable security practices" are relevant to determine liability under Section 43A (Compensation for failure to protect data), they are not a statutory factor used to calculate the final monetary amount of compensation once the default is established.

Information Booster:

The adjudication process under the IT Act is a unique civil-regulatory mechanism designed to provide speedy justice for cyber-related grievances.

• Adjudicating Officer: Usually the Secretary of the IT Department of the State Government is appointed as the Adjudicating Officer.
• Pecuniary Jurisdiction: The Adjudicating Officer can hear cases where the claim for injury or damage does not exceed $₹5$ crore. Claims exceeding this amount must be filed in a competent civil court.
• Powers of Civil Court: Under Section 46, the officer has the powers of a civil court, including summoning witnesses and requiring the production of documents.