Karnataka HC Directs Pre-Grant Service Counted For 31 Aided-School Staff’s Pension And Benefits, Bars State Arrears For That Period

The petitioners, teaching and non-teaching employees of aided educational institutions, sought recognition of service rendered from their respective appointment dates, including the period before their posts were admitted to grant-in-aid.

They asked that this service be considered for pay fixation, increments, seniority, pensionary benefits and other consequential service benefits, relying on the judgment in W.A. No. 2476/2015 and connected matters dated 24 July 2026.

The State submitted that the relief was limited by the clarification in paragraph 61 of that appellate judgment.

The Court applied the principle stated in paragraph 61 of the judgment in W.A. No. 2476/2015 and connected matters, read with Annexure I to the Rules, 1999.

The management of the institution remains liable for salary and other benefits until the post is admitted to grant-in-aid; the State is not liable for that pre-grant period.

However, the service rendered during that period must be counted for notional fixation of pay as at the date the post is admitted to grant-in-aid and for consequential benefits, including pension and other service benefits.

Employees are not entitled to claim pre-grant salary arrears or other monetary benefits from the State.

The Court treated paragraph 61 of the appellate judgment as controlling the extent of the petitioners’ entitlement.

It therefore distinguished recognition of pre-grant service for notional and consequential benefits from liability to pay salary for that period.

Since the former was permitted but the latter remained the management’s responsibility, the Court directed the authorities to reckon the petitioners’ service from their appointment dates for notional pay fixation and the calculation of pension and other service benefits, without granting State-funded pre-grant arrears.

Respondents 1 and 2 were directed to reckon each petitioner’s service from the date of appointment, including pre-grant service, for notional pay fixation and the calculation of pension and other service benefits.

The authorities were directed to complete this consideration within six months; no pre-grant salary arrears or other monetary benefits from the State were granted.