The Karnataka High Court has stayed a single judge order, directing app-based cab aggregator Ola to pay a compensation of Rs 5 lakh to a woman who alleged sexual harassment by an Ola driver in 2019.

A division bench of Justices S R Krishna Kumar and M G Uma passed an interim order on ANI Technologies Private Limited's (Ola) appeal against the single judge verdict dated September 30.

In his verdict, the single judge bench had held that the relationship between ANI Technologies Private Limited (Ola) and its drivers was that of employer-employee.

He had directed Ola and its Internal Complaints Committee (ICC) to pay a compensation of Rs 5 lakh, along with Rs 50,000 in legal costs, to the woman who had filed the sexual harassment complaint against the driver.

The judge had also termed as 'unjustified' Ola’s refusal to act on the complaint based on the claim that drivers are not employees under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (PoSH Act).

Subsequently, the company filed a writ appeal challenging the ruling of the single judge, which required Ola to address complaints of sexual harassment involving its drivers.

During the hearing on Friday, senior advocate Dhyan Chinnappa, representing Ola, argued that the earlier judgment had erred in establishing an employer-employee relationship.

He contended that drivers merely use Ola’s platform to offer cab services and are not direct employees of the company.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.