The Telangana High Court ruled that default in repayment of personal credit card dues does not constitute misconduct under service regulations, setting aside the compulsory retirement of a former Union Bank of India officer and directing restoration of service and pensionary benefits.
Published Date – 29 July 2026, 09:39 PM
By Our Legal Correspondent
Hyderabad: Justice Juvvadi Sridevi of the Telangana High Court has held that delayed repayment of personal credit card dues cannot, by itself, constitute misconduct warranting disciplinary action. Accordingly the Court has set aside the compulsory retirement of a former Union Bank of India officer.
The writ petition was filed by M. Prakash Babu challenging the disciplinary proceedings initiated by the erstwhile Andhra Bank, which culminated in an order of compulsory retirement in July 2009. The petitioner contended that the proceedings were initiated solely on account of default in repayment of his personal credit card dues and had no connection with the discharge of his official duties.
Counsel for the petitioner submitted that the credit card was issued as a commercial banking product and that the Bank had the authority to recover the dues from his salary. It was argued that the Bank had ultimately recovered the entire outstanding amount and, therefore, initiation of disciplinary proceedings was without authority of law.
Allowing the writ petition, Justice Sridevi held that the relationship between the Bank and the petitioner in respect of the credit card was that of a creditor and borrower and not that of an employer and employee.
The Court observed that while the Bank was entitled to recover the outstanding amount in accordance with the contractual terms, mere default in repayment of personal credit card dues did not amount to misconduct under the service regulations.
Accordingly, the Court set aside the charge-sheet, enquiry proceedings and the order of compulsory retirement, and directed the Bank to extend all consequential service, pensionary and retiral benefits to the petitioner within eight weeks.
