The Supreme Court of India, in a judgment delivered on 12 May 2023, found serious deficiencies in the implementation of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) and issued comprehensive directions to Central and State governments, as well as private institutions, to ensure strict compliance. The Bench of Justice Ajay Rastogi and Justice Bela M. Trivedi observed that a decade after enactment, numerous organisations continued to operate without constituting mandatory Internal Complaints Committees.
Background
The matter originated from a sexual harassment complaint against a lecturer at Goa University. The university's Internal Committee had conducted an inquiry but the Supreme Court found procedural irregularities in how the investigation was carried out, including inadequate notice to the accused and failure to follow principles of natural justice.
While deciding the specific appeal, the Court took the broader view that the implementation gaps were systemic. The POSH Act, enacted in 2013 following the Supreme Court's 1997 guidelines in Vishaka v. State of Rajasthan, mandates every employer with ten or more employees to constitute an Internal Complaints Committee (ICC). It also requires the establishment of Local Complaints Committees at the district level. Despite these statutory requirements, compliance remained patchy across sectors.
Key Holdings
The Supreme Court issued the following directions:
Mandatory ICC constitution: All ministries, departments, government organisations, and private establishments must ensure the constitution of Internal Complaints Committees in strict compliance with Section 4 of the POSH Act. Non-constitution of an ICC itself attracts penalties under Section 26.
Compliance verification: The Central and State governments were directed to verify the constitution of ICCs in all government departments and agencies within a specified timeline. Regular compliance audits must be conducted.
Orientation and training: All members of Internal Complaints Committees must undergo training on the provisions of the POSH Act, the rules framed thereunder, and the principles of natural justice to be followed during inquiries.
District-level Local Committees: State governments were directed to ensure that Local Complaints Committees are constituted in every district as required under Section 6 of the Act, for complaints from workplaces with fewer than ten employees and from the unorganised sector.
Natural justice in inquiries: The Court emphasised that inquiry proceedings under the POSH Act must strictly adhere to principles of natural justice, including adequate notice, reasonable opportunity to present a defence, and a fair hearing before an impartial committee.
Implications for Practitioners
This judgment transforms the compliance landscape for employers across India. Corporate counsel and HR teams must immediately audit whether their organisations have a duly constituted ICC meeting the statutory requirements — including external member composition and chairperson qualifications under Section 4. The Court's direction for compliance verification means that government audits of ICC constitution are now a realistic prospect.
For practitioners handling POSH complaints, the emphasis on natural justice provides a strong basis for challenging inquiry proceedings that deny adequate opportunity to either party. The procedural safeguards articulated by the Court apply equally to the complainant and the respondent.
Employment lawyers should also note the Court's implicit criticism of organisations that treat ICC constitution as a paper compliance exercise. The direction for mandatory training of ICC members suggests that future challenges to inquiry outcomes may focus on whether committee members were adequately equipped to conduct fair proceedings.