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

The petitioners, retired teaching and non-teaching employees of a college affiliated with Kuvempu University, sought a direction to count their service from initial appointment until their posts were admitted to grant-in-aid, for pay fixation and pensionary and other service benefits

They relied on the decision in W.P. No. 21216/2014 and connected matters, affirmed in W.A. No. 2476/2015 and connected matters

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

Whether service rendered before a post’s admission to grant-in-aid must be reckoned for notional pay fixation and consequential pensionary and other service benefits

Whether employees are entitled to salary arrears or other monetary benefits from the State for the pre-grant period

The Court applied the clarification in paragraph 61 of the judgment in W.A. No. 2476/2015 and connected matters.

Under that clarification, pre-grant service 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; however, the State is not liable for salary arrears or other monetary benefits for the period before admission to grant-in-aid.

The Court also noted that Annexure-I to the Rules, 1999 places responsibility for salary and other benefits during the non-grant period on the institution’s management

The petitioners’ claim fell within the scope of the appellate court’s clarification: prior service could be recognized for notional pay fixation and consequential benefits, but not as a basis for claiming pre-grant salary arrears from the State.

Accordingly, the Court directed the relevant respondents to reckon the petitioners’ service from their initial pre-grant appointments for the specified notional and consequential purposes

Respondents 1, 2 and 4 were directed to reckon the petitioners’ pre-grant service from their dates of appointment for notional pay fixation and calculation of pension and other service benefits, and to complete that consideration within six months.

The direction did not extend to payment by the State of salary arrears or other monetary benefits for the pre-grant period