Pre-grant-in-aid service must be reckoned for notional pay fixation and consequential pensionary benefits.

The petitioners, teaching and non-teaching employees of a recognised private aided educational institution, sought recognition of their service from their respective 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 the Karnataka High Court’s decision in W.A. No. 2476/2015 and connected matters, particularly paragraph 61, which addressed the effect of pre-grant service.

Whether service rendered before the petitioners’ posts were admitted to grant-in-aid could be reckoned for notional pay fixation and consequential service and pensionary benefits

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

The Court applied the principle stated in paragraph 61 of the judgment in W.A. No. 2476/2015 and connected matters, dated 24 July 2026: service during the non-grant period is to be counted for notional pay fixation as at the date the post is admitted to grant-in-aid and for consequential benefits, including pension and other service benefits, but does not entitle employees to salary arrears or other monetary benefits from the State for the pre-grant period.

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

The petitioners’ claim fell within the scope of the principle in paragraph 61 of the appellate judgment.

The Court therefore directed that their pre-grant service be reckoned for notional pay fixation and calculation of pension and other service benefits, while the State’s liability did not extend to salary arrears or other monetary benefits for that period.

The petition was allowed and disposed of. The consideration was to be completed within six months.