Pre-grant-in-aid service counts for notional pay fixation and pension benefits, but not salary arrears.

The petitioners, teaching and non-teaching employees of 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 and consequential service and pensionary benefits.

They relied on representations and the Karnataka High Court’s judgment in W.A. No. 2476/2015 and connected matters, dated 24 July 2026.

The State submitted that the extent of relief was governed by paragraph 61 of that appellate judgment.

The Court applied the principles stated in paragraph 61 of the judgment in W.A. No. 2476/2015 and connected matters. Under that ruling, service during the non-grant period is to be counted 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.

The management remains liable for salary and other benefits during the non-grant period; employees cannot claim those arrears or other monetary benefits from the State for that period. The appellate court also relied on Annexure-I to the Rules, 1999, as placing that pre-grant liability on the management.

The Court treated the appellate judgment as controlling and accepted the State’s submission that the relief was confined by paragraph 61 of that judgment.

It therefore distinguished recognition of pre-grant service for notional fixation and consequential benefits from any claim to salary arrears for that period. The petitioners’ service was to be reckoned from their initial appointment dates for the former purposes, but the State was not made liable for pre-grant salary arrears.

The respondents were directed to complete that consideration within six months. No entitlement to pre-grant salary arrears from the State was granted.