Pre-grant-in-aid service counts for notional pay fixation and pensionary 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.

They requested consequential benefits including pay fixation, increments, seniority, and pensionary benefits, relying on the decision in W.A. No. 2476/2015 and connected matters.

The State submitted that the relief was limited by the appellate court’s clarification in paragraph 61 of that decision.

1. 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.

2. 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, dated 24 July 2026.

Under that clarification, service during the non-grant period is to be considered for notional pay fixation as on the date the post is admitted to grant-in-aid and for consequential pensionary and other service benefits; however, the State is not liable for salary arrears or other monetary benefits for the pre-grant period.

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

The Court treated paragraph 61 of the appellate judgment as defining both the scope and limits of the petitioners’ entitlement.

It therefore directed that their pre-grant service be reckoned for notional pay fixation and consequential benefits, while preserving the rule that salary and other monetary benefits for the non-grant period remain the management’s responsibility, not the State’s.

Respondents 1, 2, and 4 to 6 were directed to reckon the petitioners’ service from their respective dates of appointment for notional pay fixation and calculation of pension and other service benefits, and to complete the consideration within six months.

No State liability for pre-grant salary arrears or other monetary benefits was recognised.