Karnataka HC Stays Order Directing Ola to Pay Rs 5.5 Lakh in Passenger's Sexual Harassment Case

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Synopsis

A single judge bench of the high court on September 30, 2024 found OLA and ANI Technologies Pvt. Ltd.'s Internal Complaints Committee guilty of deliberate negligence and inaction in a female rider's sexual harassment case involving an OLA driver and ruled that they had to compensate the woman

The Karnataka High Court has stayed the earlier order that directed Ola's parent company, ANI Technologies, to pay Rs 5.5 lakh in compensation and legal expenses to a woman who alleged she was sexually harassed by one of its drivers.

The stay was granted on Friday, October 4, 2024, following arguments presented by Ola's counsel before a division bench comprising Justices S R Krishna Kumar and M G Uma. 

Ola challenged the previous judgment, which had interpreted the driver as an employee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act). Ola's counsel argued that the company does not employ drivers, thus the POSH Act should not apply.

The earlier judgment, passed on September 30 by Justice M G S Kamal, had found that the subscription agreement between Ola and its drivers met the definition of 'employee' under the POSH Act. It further highlighted Ola's lack of prompt action and ordered compensation for the woman.

The court's stay will remain in effect until October 28, when further hearings will take place.

A writ petition was moved before the high court by a woman who alleged sexual harassment by an OLA cab driver in 2019, claiming her complaint to ANI Technologies went unaddressed. The company's Internal Complaints Committee (ICC) had refused to investigate the matter, stating it lacked jurisdiction based on external legal counsel's advice.

Consequently, the woman sought high court's direction for the company to investigate her complaint and urged the Union Ministry of Women and Child Development to ensure OLA's compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).

Additionally, she requested the state government to implement rules for the protection and safety of women and children using taxi services.

Along with a direction to ANI Technologies to pay the woman Rs 5 lakh compensation, the high court, on September 30, ordered the company's ICC to conduct an inquiry into the woman's complaint as per the POSH Act, to be completed within 90 days with a report submitted to the District Officer. Court emphasized that the identities of those involved must remain confidential as per Section 16 of the POSH Act.

Additionally, court directed ANI Technologies to pay Rs 50,000 in litigation expenses as well. 

Case Title: ANI TECHNOLOGIES PRIVATE LIMITED V/S MS.X