Karnataka HC Directs Pay And Pension Credit For 37 Aided-Education Employees’ Pre-Grant Service, But No State Salary Arrears

In brief

The question

Whether service rendered by employees before their posts were admitted to grant-in-aid must be reckoned for fixation or refixation of pay and consequential service benefits.

The court held

The Court allowed the writ petition and issued a mandamus directing the respondent authorities to consider the petitioners’ service from their initial appointments, before admission of their posts to 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.

It also directed

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

The relief does not include pre-grant salary arrears or other monetary benefits payable by the State.

01Facts

The petitioners, serving and retired employees of private aided educational institutions, sought recognition of service rendered before their posts were admitted to grant-in-aid for pay fixation, increments, seniority, pension and other consequential service benefits.

pp. 10–12 · ¶ 3–4

They relied on a representation dated 31 August 2026 and on an earlier Single Judge decision in W.P. No. 21216/2014, upheld by a Division Bench on 24 July 2026.

pp. 10–12 · ¶ 3–4

The petition was taken up for final disposal with the parties’ consent because the issue was considered covered by the Division Bench decision.

p. 10 · ¶ 1

02Issues

i.Whether service rendered by employees before their posts were admitted to grant-in-aid must be reckoned for fixation or refixation of pay and consequential service benefits.

pp. 11–13 · ¶ 4–5

ii.Whether the State is liable to pay salary arrears or other monetary benefits for the pre-grant period.

pp. 12–13 · ¶ 4, quoting Division Bench judgment para. 61

03Law Applied

The Court applied the Division Bench’s decision dated 24 July 2026 in W.A. No. 2476/2015 and connected matters, which upheld the decision in W.P. No. 21216/2014 striking down the Karnataka Private Aided Educational Institutions Employees (Regulation of Pay, Pension and Other Benefit) Act, 2014, insofar as it excluded pre-grant service from service and pensionary benefits.

pp. 11–12 · ¶ 4

Under the Division Bench’s interpretation of the grant-in-aid framework and Annexure I to the Rules, 1999, pre-grant service is to be counted for notional pay fixation as at the date the post is admitted to grant-in-aid and for consequential service and pension benefits; however, the State is not liable for salary arrears or other monetary benefits for the pre-grant period, as salary and benefits for that period remain the management’s responsibility.

pp. 12–13 · ¶ 4, quoting Division Bench judgment para. 61

04Reasoning

The Court found the petitioners similarly placed to the employees covered by the Division Bench ruling.

pp. 12–13 · ¶ 4–5

It therefore applied that ruling to their claim, distinguishing recognition of pre-grant service for notional fixation and consequential benefits from any claim for salary arrears against the State for the pre-grant period.

pp. 12–13 · ¶ 4–5