The Karnataka High Court Today (Oct 4) stayed a single-judge order that had directed ANI Technologies, the parent company that owns and operates OLA Cabs, to pay Rs 5 lakh compensation to a woman who was sexually harassed by an OLA cab driver in 2018. On September 30, a single judge of the High Court had directed OLA to pay compensation to a woman passenger.
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Bengaluru: The Karnataka High Court temporarily stayed a previous order by a single-judge bench, which had directed ANI Technologies, the parent company of OLA Cabs, to compensate a woman with Rs 5 lakh for the sexual harassment she endured by an OLA driver in 2018.
The Division Bench, consisting of Justices SR Krishna Kumar and MG Uma, passed the interim order in response to an appeal by ANI Technologies.
The company sought relief from the single-judge’s decision, which had not only imposed financial compensation but also raised critical questions about the interpretation of OLA’s liability under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 (PoSH Act).
Key Issue: Interpretation of OLA’s Liability
Senior Advocate Dhyan Chinnappa, representing OLA Cabs, clarified that the company’s primary concern wasn’t the compensation amount of Rs 5 lakh, but rather the implications of the court’s interpretation of their legal responsibility under the PoSH Act.
He pointed out that the single-judge’s understanding of OLA’s liability in such cases was questionable, particularly in light of the fact that OLA drivers are not direct employees of the company.
“We don’t employ the drivers. The drivers employ OLA…Drivers are independent contractors,”
-he asserted, emphasizing the independent contractor model that OLA follows.
This argument holds significant weight, as it challenges whether OLA can be held accountable under the PoSH Act when drivers are not technically its employees.
Court’s Observation and Future Proceedings
Acknowledging the complexities of the case, the Court remarked that the matter requires further detailed consideration.
It also issued notices to multiple respondents involved in the case and scheduled the next hearing for October 28.
In the interim, the Court stated,
“Meanwhile, there shall be stay of impugned order till the next date of hearing,”
-providing temporary relief to OLA.
Background of the Case
The original order, now under challenge, was passed by Justice MGS Kamal in response to a petition filed by a woman who had suffered sexual harassment during an OLA cab ride in August 2018. The woman had alleged that during the ride, the driver had behaved in an obscene manner—staring at her through the rearview mirror, watching pornographic content on his mobile phone in a manner visible to her, and even masturbating.
Despite her requests, the driver refused to stop the cab before reaching the destination, further exacerbating the distressing situation.
Upon reporting the incident to OLA, the company informed her that the driver had been blacklisted and would undergo counselling. However, the woman alleged that the company failed to take any concrete action beyond this, which led her to file a formal police complaint.
Justice Kamal’s Ruling
Justice Kamal’s earlier ruling had not only mandated Rs 5 lakh compensation to the petitioner for the distress caused but also directed OLA’s Internal Complaints Committee (ICC) to conduct an inquiry into the woman’s complaint under the PoSH Act. Additionally, Rs 50,000 was awarded to cover the litigation expenses.
The single-judge’s order highlighted the responsibility of companies like OLA to ensure passenger safety and emphasized the importance of conducting thorough investigations into such complaints under the provisions of the PoSH Act.
Conclusion
As the legal battle progresses, the Karnataka High Court’s interim stay on the order provides temporary relief to ANI Technologies.
However, the question of whether companies like OLA, which operate in the gig economy and rely on independent contractors, can be held accountable under laws like the PoSH Act remains an important legal issue.
The upcoming hearings will likely shed more light on the Court’s stance on these critical questions of corporate liability and passenger safety.
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