Karnataka High Court Stays Compensation Order Against Ola

The Karnataka High Court has put a hold on a single judge's order requiring Ola to compensate a woman alleging sexual harassment by an Ola driver. The decision came after Ola appealed the judgment asserting that drivers are not employees of the company.

The Karnataka High Court has issued a stay on a previous ruling that mandated app-based cab service provider Ola to pay compensation to a woman who accused an Ola driver of sexual harassment in 2019.

A division bench consisting of Justices S R Krishna Kumar and M G Uma intervened following an appeal by ANI Technologies Private Limited, which operates Ola, against the single judge's decision on September 30.

The earlier verdict had described the relationship between Ola and its drivers as employer-employee, obligating Ola to compensate the complainant. Ola contested this, maintaining that drivers merely utilize its app for their services.

(With inputs from agencies.)