Karnataka High Court stays order directing OLA Cabs to compensate woman for sexual harassment

The Karnataka High Court on Friday stayed a single-judge order that had directed ANI Technologies, the parent company that owns and operates OLA Cabs, to pay ₹5 lakh compensation to a woman who was sexually harassed by an OLA cab driver in 2018.

A Division Bench of Justices SR Krishna Kumar and MG Uma passed the interim order on an appeal by ANI Technologies (OLA).

Senior Advocate Dhyan Chinnappa, representing OLA Cabs, submitted that the issue was not about the ₹5 lakh compensation ordered to be paid by the cab aggregator.

Rather, he said that concern was about the single-judge's interpretation of OLA's liability and the manner in which the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH Act) was interpreted.

"We don't employ the drivers. The drivers employ OLA...Drivers are independent contractors," he told the Court.

The Court observed that the matter requires detailed consideration. It issued notice to various respondents and posted the matter for hearing on October 28.

"Meanwhile, there shall be stay of impugned order till next date of hearing," the Court added.

The order under challenge was passed by Justice MGS Kamal on a petition by a woman passenger who sought action against an OLA driver under the POSH Act.

The woman had alleged that she was sexually harassed by the driver in August 2018, and that Ola had failed to take appropriate action following her complaint.

She had said that during her cab ride, the driver kept staring at her through the rearview mirror and watching a pornographic video on his mobile phone in a manner that was visible to her. The driver had also been masturbating and refused to stop the cab before the destination, the petitioner said.

Following the woman's initial complaint, Ola told her that the driver had been blacklisted and would be sent for counselling. The company, however, did not take any further action, prompting the petitioner to lodge a formal police complaint.

Justice Kamal had not only ordered ₹5 lakh compensation (apart from ₹50,000 as litigation expenses) to be paid to the petitioner, but also directed that the Internal Complaints Committee (ICC) of ANI Technologies should hold an inquiry into the woman’s complaint under the PoSH Act.