Telangana High Court Overturns Union Bank Officer's Forced Retirement

The Telangana High Court in Hyderabad set aside the 2009 compulsory retirement of former Union Bank of India officer M Prakash Babu. Justice Juvvadi Sridevi held that default on a personal gold credit‑card, whose limit was Rs 1 lakh and balance rose to about Rs 1.68 lakh, does not constitute service misconduct under bank rules.

The court quashed the charge‑sheet and disciplinary inquiry, directing the bank to treat Babu as having remained in service until his superannuation date and to pay all accrued benefits within eight weeks. It noted that the credit‑card facility is a commercial product, not an employment condition, and that the punishment was disproportionate.