...But, What is the ground situation?

Lack of Legally Acceptable Digital Signature Facility

If however, a person has to produce an E-Mail as an irrefutable evidence in the Court of law, it should be digitally signed by the originator using a Digital Certificate issued by a Certifying Authority licensed in India.

Presently five entities have been licensed as Certifying Authorities, namely Safe Scrypt, a joint venture between Sify and Verisign, TCS, NIC, and IDRBT, (Institute For Development of  Research in Banking Technology, a wing of the RBI) and MTNL.

Of these, Safescrypt, TCS, and MTNL will be issuing digital certificates to individuals. NIC will restrict its activities to the Government sector and IDRBT will restrict its activities to Bank officials. None have undertaken an intense marketing of their services.

Also, only one Company in India has started  developing applications for individual users to use Digital signatures.

Hence, despite the law having been passed nearly two years ago,  the use of digital signatures is still rare. Even when more people start using the Digital signatures, the system may  not serve all the requirements of the contracting parties.

...A digitally signed e-mail may be a good evidence against the originator. But will it be sufficient to promote Electronic Contracts?