The Gauhati High Court has clarified that an employer can still initiate disciplinary proceedings against an employee even after a conciliation settlement under the POSH (Sexual Harassment of Women at Workplace) Act. The Court explained that conciliation under Section 10(4) of the POSH Act bars only further inquiry by the Internal Complaints Committee (ICC), and does not extinguish the employer’s independent disciplinary jurisdiction under service rules.
The case arose from a sexual harassment complaint within the Airports Authority of India, where the parties opted for conciliation due to workplace disturbance. Because of that, the ICC curtailed its inquiry and noted a lack of evidence. Later, new material surfaced, and the employer began departmental proceedings under its service rules. The Single Judge had quashed those disciplinary proceedings, but the employer appealed.
A Division Bench of Chief Justice Ashutosh Kumar and Justice Arun Dev Choudhury observed that the statutory bar in Section 10(4) applies only to further ICC inquiry after conciliation, and not to the employer’s separate power to investigate and initiate disciplinary action based on fresh evidence or independent material. The Court noted that treating the bar as extending to disciplinary action would undermine the employer’s duty to ensure a safe workplace, as required under Section 19 of the Act.
Accordingly, the High Court partly allowed the employer’s appeal, setting aside the portion of the Single Judge’s order that quashed the departmental proceedings. It directed that the disciplinary inquiry be resumed in accordance with service rules, ensuring full opportunity for defence, while keeping all factual and merit issues open for resolution.
