Madras High Court in the case of HCL Technologies Ltd. vs. N. Parsarathy, W.P. No. 5643/2020, quashed the Labour Court’s order, which had set aside the findings and recommendations of the Internal Committee in a sexual harassment complaint lodged against the employee under the PoSH Act. In its ruling, the Court observed that the Labour Court had failed to grasp the fundamental principle that an inquiry conducted by the Internal Committee cannot be equated with an inquiry in an industrial dispute. The Court further noted that the Labour Court should not have placed undue emphasis on the non-furnishing of CCTV footage to the employee, as this was not central to the nature of the inquiry. The Court emphasized that the nature of the complaint, the constitution of the Internal Committee, the course of the inquiry, and the findings of the Internal Committee were all closely interlinked. Importantly, the Internal Committee did not exceed its scope or act with any malicious intent towards the employee. The Court also highlighted that strict rules of evidence do not apply to the type of inquiry conducted by the Internal Committee in sexual harassment cases involving female employees.
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