Hyderabad: The Telangana High Court set aside the compulsory retirement of a former Union Bank employee who had defaulted on personal credit card dues, holding that delayed repayment of a personal loan cannot by itself constitute service misconduct under service regulations. The petitioner had challenged disciplinary proceedings initiated after he failed to clear outstanding dues on a personal Gold Credit Card. The bank defended its action, citing prolonged default, breach of credit limits and the need for officers to maintain financial discipline. The Judge noted that the credit card facility was a commercial product, not a condition of employment, making the relationship one of creditor and borrower rather than employer and employee. Compulsory retirement, with loss of service and reduced benefits, was ruled excessive and violative of proportionality.