Pre-grant service counts for notional pay fixation and pension, but not salary arrears from the State.

The 69 petitioners, teaching and non-teaching employees of aided educational institutions, sought recognition of service from their respective initial appointment dates, including service before their posts were admitted to grant-in-aid.

They requested consequential benefits, relying on the Karnataka High Court’s common judgment dated 24 July 2026 in W.A. No. 2476/2015 and connected matters, and had submitted representations to the authorities.

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

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

2. 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 common judgment in W.A. No. 2476/2015 and connected matters (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; however, the State is not liable for salary arrears or other monetary benefits for that period.

The Court also noted that Annexure I to the Rules, 1999 places responsibility for salary and other benefits until grant-in-aid admission on the institution’s management.

The petitioners’ claim fell within the issue addressed by the appellate judgment: whether pre-grant service could be counted for pay fixation and consequential benefits.

Applying that judgment’s express distinction between recognition of service and liability to pay salary, the Court directed that the petitioners’ pre-grant service be included for notional pay fixation and calculation of pension and other service benefits, without creating a right to pre-grant salary arrears from the State.

Respondents 1, 2 and 4 were directed to reckon the petitioners’ service from their respective appointment dates, including pre-grant service, for notional pay fixation and calculation of pension and other service benefits.

The authorities were to complete that exercise within six months; no State liability for pre-grant salary arrears was recognised.