Karnataka HC Directs Aided-Institution Staff’s Pre-Grant Service Be Considered For Pay And Pension, But Bars State Salary Arrears for That Period

The petitioners, employees or former employees of aided educational institutions, sought recognition of their service before their posts were admitted to grant-in-aid.

They contended that this service should count for pay fixation, increments, seniority, pension and other consequential service benefits.

They relied on a 2015 single-judge decision striking down the Karnataka Private Aided Educational Institutions Employees (Regulation of Pay, Pension and Other Benefit) Act, 2014, and the Division Bench’s decision affirming that judgment on 24 July 2026.

The petitioners had also submitted a representation dated 31 August 2026.

With counsel’s consent, the Court took up the petition for final disposal, treating the Division Bench ruling as covering the dispute.

The Court applied the Division Bench’s ruling in W.A. No. 2476/2015 and connected matters, dated 24 July 2026, which affirmed the decision in W.P. No. 21216/2014 and connected matters, dated 10 July 2015.

The Division Bench held that pre-grant service is to be considered for notional pay fixation as of the date the post is admitted to grant-in-aid and for consequential benefits, including pension and other service benefits; however, the State is not liable for salary arrears or other monetary benefits for the period before grant-in-aid.

Under Annexure I to the Rules, 1999, the management remains responsible for salary and benefits during that period.

The Court found the petitioners similarly placed to the employees covered by the Division Bench ruling and treated that decision as governing their claims.

It therefore directed the authorities to count the petitioners’ pre-grant service for pay fixation or refixation and consequential service benefits, consistently with the Division Bench’s clarification.

That clarification preserves the management’s responsibility for pre-grant salary and excludes any claim against the State for pre-grant salary arrears or other monetary benefits.

The Court issued a mandamus directing the respondent authorities to consider the petitioners’ service from their initial appointments before grant-in-aid for fixation or refixation of pay, increments, seniority, pensionary and retirement benefits, and other consequential service benefits, in accordance with paragraph 61 of the Division Bench judgment.

The authorities were directed to complete the exercise within six weeks.

The order does not grant pre-grant salary arrears from the State.