Karnataka HC Directs Pre-Grant Service Credit For 47 Aided-School Staff’s Pension And Pay, But No State Salary Arrears for That Period

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

They had submitted representations seeking those benefits in light of a Division Bench judgment dated 24 July 2026 in W.A. No. 2476 of 2015 and connected matters. With the parties’ consent, the High Court took up the writ petition for final disposal, finding it covered by that judgment.

The Division Bench’s judgment in W.A. No. 2476 of 2015 and connected matters, dated 24 July 2026, confirmed the earlier decision striking down the Karnataka Private Aided Educational Institutions Employees (Regulation of Pay, Pension and Other Benefit) Act, 2014, which had excluded pre-grant service from relevant benefits.

The Division Bench held that non-grant service is to be considered for notional pay fixation as at the date the post is admitted to grant-in-aid and for consequential pension and other service benefits.

Under Annexure I to the Rules, 1999, the institution’s management—not the State—is liable for salary and other benefits during the non-grant period; employees therefore cannot claim arrears of salary or other monetary benefits from the State for that period.

The Court treated the petitioners as similarly situated to the employees covered by the Division Bench judgment.

Applying that judgment, it held that their pre-grant service was relevant to notional pay fixation and consequential service benefits, while the limitation on State liability for salary during the non-grant period remained in force.

It accordingly directed the authorities to consider the past service in accordance with paragraph 61 of the Division Bench judgment.

The respondents were directed 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 the Division Bench judgment. The exercise was to be completed within six weeks.