Karnataka High Court Stays Order Directing OLA Cabs To Pay Compensation To Customer Who Alleged Sexual Harassment By Driver

The Karnataka High Court on Friday stayed till October 28, a single judge bench order which had directed ANI Technologies, which owns and operates OLA Cabs, to pay a sum of Rs 5 lakh towards compensation to a woman who allegedly faced sexual harassment at the hands of their driver, during a trip in 2019.

A vacation bench of Justice S R Krishna Kumar and Justice M G Uma said, "The matter requires consideration." Then it issued notice to the respondents returnable on October 28 and said “Notice to respondents, there shall be stay of the order till next date of hearing.”

A single judge bench of Justice M G S Kamal had by its order dated September 30, directed the Internal Complaints Committee of the company to hold an inquiry into the complaint in accordance with provisions of the Sexual Harassment of Woman At Workplace (Prevention, Prohibition and Redressal) Act, 2013 [POSH Act]. The process is to be completed within 90 days and a report is to be submitted to the District Officer.

The court had held that the driver of OLA would be considered an employee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).

Senior Advocate Dhyan Chinnappa appearing for the appellant submitted in this case OLA doesn't employ the driver, and so the implementation of the PoSH Act would be doubtful. 

Court in its order had also cautioned the stakeholders to ensure compliance with Section 16 of the POSH Act and see that the identity of persons involved in the matter is not disclosed. ANI Technologies has also been directed to pay an additional Rs 50,000 towards litigation expenses.

The petitioner was allegedly subjected to sexual harassment in 2019 and her complaint to ANI Technologies, seeking action against the driver was not entertained. The Internal Complaints Committee had declined to hold an enquiry in the matter upon the advice given by 'external legal counsel' that it did not have jurisdiction to enquire into the matter.

Following this, she approached the high court seeking direction on the company to inquire into the complaint.

The court in its order had also directed the Karnataka State Road Transport authority, which had issued notice seeking an explanation from ANI Technologies, to proceed with the matter and complete the process within 90 days, after affording the opportunity of hearing. Further, it imposed a Rs. 1 lakh cost on the State, purportedly for failure to respond to the petition.

Case Title: ANI Technologies Private Limited & Ms X & Others

Case No: WA 1493/2024.