In a path-breaking decision by the Indore Bench of High Court of Madhya Pradesh (“HC / Court”), through its Order dated 16.9.2019 and in the matter of the following writ petitions, the HC awarded compensation to a tune of Rs. 25,00,000/- (Rupees twenty five lakhs only) to be paid by the Petitioner within 8 weeks from the date of this Order and imposed a penalty of Rs. 50,000/- (Rupees fifty thousand only) on the employer for not forming an Internal Committee as required under the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”).
Global Health Private Limited Vs. Local Complaints Committee, District Indore and others [Writ Petition No.22317 of 2017];
Mrs. Arvinder Bagga Vs. Local Complaints Committee, District Indore and others [Writ Petition No.22314 of 2017].
The brief facts of the case are as follows:
A complaint was made by a female Senior Marketing Manager (“Respondent) of a company named Medanta, which in the present case is “Global Health Private Limited” (“Petitioner / Hospital”). The allegation made by the Respondent was interference with her work, creation of an intimidating and hostile environment by the acts, misdemeanor and conduct of immediate superior officer Dr. Gowrinath Mandiga, Medical Superintendent / Manager of the Petitioner’s company. Her repeated requests / constant complaints for protection and support sought from the superior authorities including the Managing Director, was left unattended. She found herself singled out and was subjected to typical hostile work environment intimidating with her future employment and post the complaint made by her, she was terminated by the employer. The complaint was submitted in the Women Welfare Section of Ministry of Women & Child Development, Government of India which was subsequently forwarded to the Local Committee, since the Hospital did not have an Internal Committee of its own. The Local Committee conducted an enquiry and issued directions to the Hospital by stating that disciplinary action be initiated against the Medical Superintendent and also imposed a penalty of Rs.50,000/- for failing to constitute an Internal Committee.
The Hospital filed a petition in this HC challenging the order of the Local Committee.
Arguments by both parties:
- The Petitioner submitted that none of the communications made by the complainant prior to or post the date of complaint contained any allegations of sexual harassment, did not contain any mention of sexual harassment. Also, the direction passed by the Local Committee is against the principals of natural justice as the intention of the Medical Superintendent was not taken into consideration and a conclusion of sexual harassment was made. The Hospital therefore, directed that the complaint be investigated to find out the intention behind the alleged acts committed by the Medical Superintendent. Furthermore, the Petitioner stated that the Petitioner had an Internal Committee and vehemently denies to the fact that a complaint was raised and, therefore, the Internal Committee had no occasion to look into the complaint.
- The Respondent argued that notices were issued, and sufficient opportunity was afforded to the Hospital and the Medical Superintendent. Due to hostile and non-cooperative attitude of the Medical Superintendent and also representative of the Hospital, the enquiry was prolonged. The Hospital was supplied with copy of the complaint subject to their request and as a response, they denied the allegations. The Hospital assured to the Local Committee that an enquiry shall be held on the complaint through the Internal Committee and/or employees grievance committee. However, neither any enquiry was conducted, nor the report was submitted before the Local Committee. The Local Committee had sent its representative to the Hospital to verify existence of the Internal Committee in the Hospital before conducting enquiry into the complaint. Upon enquiry, it was found that the Internal Committee was not in existence at the Hospital.
Observations of the Court:
On hearing the arguments of both parties and post considering materials on record, the HC stated that the POSH Act is essentially and predominantly a social welfare legislation. The provisions contained thereunder must receive contextual meaning and required to be interpreted broadly and liberally. Section 2(n) defines “sexual harassment” and the definition is inclusive in nature providing any one or more of the unwelcome acts or behaviour provided thereunder whether directly or by implication shall constitute sexual harassment. Therefore, the word “sexual harassment” must not receive narrow and obscure meaning. The complainant was a Senior Manager (Marketing) at the Hospital and her vision was benefit of Hospital. It is really unfortunate that the Managing Director did not care for the seriousness and sensitivity of the situation under which the complainant was subjected to, instead asked her to ‘bridge the gap’ with the Medical Superintendent. Such indifferent and insensitive attitude of the Managing Director is deplorable. Also, from the deliberations recorded during the enquiry of the Local Committee, it was observed that no enquiry report was submitted by the Hospital, although the Hospital stated that they intend to refer to the complaint to an Employee Grievance Committee. Therefore, no complaint of violation of principles of natural justice at the instance of Hospital and/or Medical Superintendent can be entertained. Moreover, the existence of the Internal Committee itself is doubtful at the Hospital.
The Court disposed of W.P.No.22314/2017 and W.P.No.22317/2017 by directing the following:
- Complainant is entitled to a compensation of Rs.25,00,000/- for the pain & suffering, loss of reputation, emotional distress and financial loss for eighteen months for no fault on her part resulting into deprivation of right to live with dignity, payment of EPF and other monetary dues (if still not paid). This compensation is required to be paid to the complainant within 8 weeks, failing which the same shall attract interest at the rate of 09% (nine) per annum.
- Hospital to issue character and experience certificate during the period she was in employment without attaching any stigma to her image; and
- The Hospital is directed to pay penalty of Rs.50,000/- (Rupees fifty thousand only) (if not already paid) due to non-existence of Internal Committee.
Key takeaways for employers, in light of this judgement:
- The importance of setting up an Internal Committee as per the provisions of the POSH Act is reinstated. Penalty for not constituting the Internal Committee is in line with the provisions of the POSH Act, which is fine of Rs. 50,000/-.
- The law presently does not fix the amount of compensation to be payable to a victim. However, from this path-breaking judgment, we notice that the HC has awarded a fairly high compensation amount of Rs.25,00,000/- for the pain & suffering, loss of reputation, emotional distress and financial loss of the victim. This re-emphasizes the importance of ensuring and maintaining safe workplaces.
Source: High Court of Madhya Pradesh, Indore Bench
