Karnataka HC Directs Pre-Grant Service Of 30 Aided-Institution Employees Counted For Pension And Pay Fixation, Not Back Pay

The 30 petitioners, employees or former employees of aided educational institutions, sought recognition of service rendered before their respective posts were admitted to grant-in-aid for pay fixation, increments, seniority, pension and other consequential service benefits.

They relied on the Division Bench’s common judgment dated 24 July 2026 in W.A. No. 2476/2015 and connected matters, which affirmed the decision 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.

After making representations to the authorities, the petitioners filed this writ petition seeking a mandamus to reckon their pre-grant service and to consider their representations in light of the Division Bench judgment.

The Division Bench’s judgment in W.A. No. 2476/2015 and connected matters, dated 24 July 2026, held that non-grant service is to be taken into account 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, employees cannot claim salary arrears or other monetary benefits from the State for the pre-grant period.

The Court also referred to Annexure I of the 1999 Rules, under which the institution’s management remains responsible for salary and benefits until the post is admitted to grant-in-aid.

The Court treated the petitioners as similarly placed to the employees covered by the Division Bench judgment. Applying that judgment, it held that their pre-grant service must be considered for notional pay fixation and consequential service and pensionary benefits, while the State has no liability to pay arrears for the period before grant-in-aid.

It therefore directed the authorities to undertake the exercise in accordance with paragraph 61 of the Division Bench judgment.

The Court issued a mandamus directing the respondents to consider each petitioner’s service from the date of initial appointment, including pre-grant service, for pay fixation or re-fixation, increments, seniority, pensionary and other consequential service benefits, subject to paragraph 61 of the Division Bench judgment. The exercise was to be completed within six weeks, with compliance reported to the Registry.