Sexual Harassment At Workplace : Delhi Court Pulls Up Standard Chartered Bank For Lapses In ICC Inquiry; Laments Lack Of Awareness About POSH Act

The Industrial Tribunal of Delhi recently criticised the Standard Chartered Bank for procedural lapses in handling a sexual harassment complaint in compliance of Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act). The Tribunal noted that the findings of Internal Complaints Committee(ICC) constituted by the Bank suffered from various illegalities.

In a sexual harassment case filed in 2022 by the Branch Manager against an employee of the Bank, along with the other procedural lapses, the Internal Complaint Committee failed to award any punishment despite holding the accused guilty.

The bench of Judge Ajay Goel said, “this Tribunal is of the opinion that findings of ICC suffers from illegality and infirmity as despite holding guilty to respondent No. 3 (accused) and finding substance in the complaint of appellant, no punishment was awarded to respondent No. 3.”

“It is clearly made out that respondent No. 4 (the Bank) and respondent No. (ICC) 1 could not comply with the provisions of POSH Act in letter and spirit due to some ignorance and lack of legal knowledge and it is need of the hour that atleast the concerned authorities should be roped in…", observed the Tribunal.

An appeal was filed before the Tribunal challenging the decision of the ICC passed in 2022. It was submitted that failure of ICC to give any punishment after holding the accused guilty is violation of Section 13 (3) (i) (ii) and Section 15 of the POSH Act.

The victim also highlighted to the Court that an anonymous witness was examined by the ICC and she was asked to share the cross- examination questions to be asked from the witness.

It was alleged that the ICC has acted in an arbitrary manner and against all the principles of natural justice by bringing anonymous witnesses and declining to reveal the name of anonymous witnesses and further by seeking cross-examination questions in advance to be asked at the time of cross- examination.

Considering the submissions, the Tribunal opined that, “This practice adopted by Internal Committee is totally against principles of natural justice and any anonymous witness cannot be permitted to be produced in enquiry under POSH Act and the practice followed by IC in the present case was prejudicial and biased towards the appellant.”

It was also observed that Internal Committee did not confine itself to the case of sexual harassment but it went beyond the same to malign the appellant and sought answers against her personal conduct. “So the Internal Committee was required to be vigilant in its conduct,” added the Tribunal.

The appellant further stated that action of the ICC in not awarding any disciplinary action or compensation is against the guidelines laid down by the Supreme Court in Vishaka and ors v. State of Rajasthan.

The Tribunal noted that a litigation cost of Rs. 1,50,000 and unconditional apology has been tendered by the accused to the victim. Additionally it directed the Bank to pay at least Rs. 50,000/- as litigation cost to the appellant. “The bank is not directed to pay any compensation amount to the complainant because the complaint of the complainant was dealt with but there was some procedural lapse and the charged official was found guilty also,” it added.

Judge Goel observed that all the members of ICC may not have legal knowledge but “repercussions are high.” Therefore, the Judge urged Delhi Commission for Women and the central government to take effective steps towards implementation of the Act.

“In these circumstances, in the interest of justice and for the purpose of effective implementation of the above act, it is desirable that Delhi Commission for Women of NCT of Delhi and Central Ministry of Social Empowerment for Woman/Ministry of Women and Child Development conduct seminars, impart legal knowledge to ICC, management as well as LCC as well as create awareness in the women regarding their rights against sexual harassment at the workplace in view of the points discussed above so that the purpose of Act is achieved and it is implemented completely, thoroughly and perfectly,” added the Tribunal. .

Case Title: X v. ICC & ors.

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Also Read - 'Serious Lapses In POSH Act Enforcement' : Supreme Court Issues Directions To Strengthen Law Protecting Women From Sexual Harassment At Workplace