Karnataka HC: 95 Aided-School And College Employees Can Count Unaided Service For Pension, But Cannot Claim Past Salary From State

The petitioners, teaching and non-teaching employees of aided educational institutions, sought to have their service during the period before their posts were admitted to grant-in-aid counted for pay fixation, increments, pension and other consequential service benefits.

The petition was heard at preliminary hearing and disposed of by reference to the Division Bench ruling in B.K. Naik.

The Division Bench in State of Karnataka and Another v. Dr. (Ms.) B.K. Naik and Others, W.A. No. 2476/2015 and connected matters (24 July 2026), held that service during the non-grant period may be counted for notional pay fixation as at the date the post is admitted to grant-in-aid and for consequential benefits, including pension and other service benefits.

Annexure-I to the Rules, 1999 places responsibility for salary and benefits during the non-grant period on the institution’s management; the State is not liable for arrears or other monetary benefits for that period.

The Court treated the issue as governed by the Division Bench’s decision in B.K. Naik, which directly addressed the treatment of service rendered during the non-grant period.

Applying that ruling, it disposed of the petition on the same terms, preserving the distinction between counting past service for notional fixation and consequential benefits, and claiming salary arrears from the State for the unaided period.

The respondents were directed to consider the petitioners’ cases in accordance with law and the observations in that judgment.

The governing rule permits non-grant service to be considered for notional pay fixation and consequential service benefits, but does not entitle employees to salary arrears from the State for the period before grant-in-aid.