The work visa is not refused due to her nationality . It may refuse due to her work which she mentioned in the application for work visa. Only high skilled or qualified professionals can get the employment visa in India.
An Employment Visa is granted to foreigners desiring to come to India for the purpose of employment, subject to fulfillment of the following conditions:
(i) The applicant is a highly skilled and/or qualified professional, who is being engaged or appointed by a company/ organization/ industry/ undertaking in India on contract or employment basis. ¬
(ii) Employment Visa shall not be granted for jobs for which qualified Indians are available. Employment Visa shall also not be granted for routine, ordinary or secretarial/clerical jobs.
(iii) The foreign national seeks to visit India for employment in a company/ firm/organization registered in India or for employment in a foreign company/ firm/organization engaged for execution of some project in India.
(iv) The foreign national must comply with all legal requirements like payment of tax liabilities etc
(v) The Employment Visa must be issued from the country of origin or from the country of domicile of the foreigner provided the period of permanent residence of the applicant in that particular country is more than 2 years.
(vi) The documents/ papers pertaining to the proposed employment, like the registration of the company under the Companies Act, proof of registration of the firm in the State Industries Department or the Export Promotion Council concerned, or any recognised promotional body in the field of industry and trade etc will be thoroughly checked to decide the category of visa that may be issued to the foreigner. The name of the sponsoring employer / organization shall be clearly stipulated in the visa sticker.
An Employment Visa is granted to those who are an employee of an Indian company / or those who intend to do honorary work (without salary) with Registered NGOs in India. The Embassy/Consulate may grant Employment visa valid for a limited validity irrespective of the duration of the contract. Further extension up to 5 years could be obtained from MHA / FRRO in the concerned state in India.
So if she applied the visa for special teacher(language/sports...)post it may get . The contract between the company and teacher is important but the rejection of visa does not create any contractual liability to the company.In India no law suit can be proceed against the company .