In April 2015, a woman walked into a State Bank of India (SBI) branch to deposit cash. What should have been a routine transaction turned into a moment of distress when she alleged that a senior bank officer misbehaved with her. That single complaint triggered a years-long legal and institutional response that culminated in a High Court judgment a decade later.
On May 2, 2025, the Chhattisgarh High Court dismissed an appeal by an SBI employee who was found guilty of sexual harassment by both internal authorities and SBI’s Internal Committee (IC) under the POSH Act, 2013.
The penalty imposed was stoppage of two salary increments with cumulative effect, which the employee challenged in the Chhattisgarh High Court. He argued that:
- He was not given a fair opportunity to defend himself.
- The inquiry was flawed and violated legal norms.
- Witnesses were not cross-examined.
However, the court noted that the inquiry was legally sound, followed principles of natural justice, and that Section 11 of the PoSH Act was duly followed.
The IC had found three charges fully proved and three partially proved, which included misbehaviour with customers, use of derogatory language and creating a hostile work environment. After a departmental inquiry under service rules and in line with the bipartite settlement procedures, the disciplinary authority imposed a penalty—stoppage of two salary increments with cumulative effect. The appellate authority later upheld this decision.
Once the employee appealed to the High Court :
- The High Court dismissed the employee’s appeal, upholding the decisions of SBI’s disciplinary and appellate authorities.
- The Court ruled that due process was followed and principles of natural justice were not violated.
- The Court emphasised that judicial review cannot re-evaluate factual findings of departmental inquiries unless there is mala fide intent or procedural irregularity, which was absent here.
What can organisations learn?
- Set up an Internal Committee (IC): As mandated by Section 4 of the PoSH Act, every organisation with 10 or more employees must constitute an IC.
- Follow due process: Section 11 of the PoSH Act requires a fair inquiry—both parties must be heard and evidence must be documented.
- Document everything: From complaint receipt to inquiry findings, detailed evidence ensures procedural integrity and judicial acceptance.
- Respect judicial boundaries: Disciplinary proceedings, when fair and well-documented, carry legal weight even in constitutional courts.
This judgment reinforces that internal mechanisms are not just procedural formalities but are the frontline defense against workplace misconduct and a strong pillar of organisational integrity. Do you want to ensure that your internal committee members are trained on the A-Z of PoSH Inquires? Please write to us at hello@serein.in.