Umakant Mishra was suspended from his job after being charged with fraud when 57 rupees and 60 paise (92 cents; 56 pence) went missing in his post office.
Mr Mishra told BBC Hindi that  the battle to clear his name reduced him to penury and his family would have starved if not for his relatives.
He is now seeking compensation.
Correspondents say cases in Indian courts can drag on for years, even decades, and official figures show that more than 30 million cases are pending in Indian courts, some dating from 1950.
Mr Mishra's troubles began on 23 July 1984 when he worked in a post-office in the Harjinder Nagar area of Kanpur city in the northern state of Uttar Pradesh.
"I was given 697 rupees and 60 paise ($11.19; Â£6.83) which the post-office had received as money orders and I had to distribute it. I distributed 300 rupees and in the evening deposited the rest with a senior official," Mr Mishra says.
When the refund was checked, it was found to be short by 57 rupees and 60 paise (92 cents; 56 pence).
"I was charged with fraud. I was suspended from my services and a complaint was lodged with the police."
Mr Mishra was jailed briefly and although he was freed on bail shortly afterwards, his long legal battle had started.
"I was summoned 348 times by the court. Initially I had to sell my house in Kanpur, then I had to sell my agricultural land in Hardoi district. I went bankrupt."
He did various odd jobs to support his family and fight the legal battle and says he was helped by his relatives who "helped me and provided me with shelter".
He was absolved of all charges last week after the prosecution could not produce any witnesses in the case.
"I was suspended when I was in my 30s. Now that I have been absolved, I should be compensated. I should get all the money that is due to me," he says.

A conference next month at the city's National Waterfront Museum will hear from delegates who have turned around the fortunes of Sydney, Australia, and Antwerp, Belgium.
It is being organised by the Design Commission for Wales in partnership with Swansea council.
One council leader said Swansea must rethink what makes a city successful.
It follows a series of shop closures across the city centre in recent years, followed by the loss of a Â£1bn project to transform the shopping district, when developers plumped to invest in the out-of-town Parc Tawe instead.
Robert Francis-Davies, Swansea council's cabinet member for enterprise, development and regeneration, said they needed to examine what makes a winning city.
"Shopping is a major part of the city centre offer here, but a lot more needs to be available to generate the footfall our traders need," he said.
"The city centre has to become a place that people want to go - a destination that's both easy to get to and offers a range of events that will create a buzz and attract people."
Initiatives have already begun to try and lure people back into town.
This week retailers have been invited to take to the streets on temporary market stalls in order to drum up passing trade with a variety of themed events.
Last weekend saw the re-launch of the Big Heart of Swansea loyalty card which offers discounts at participating stores within the city centre's Business Improvement District (BID).
According to Russell Greenslade, chief executive of Swansea BID, around 500 shoppers snapped up the offer on its first day.
"The beauty of the loyalty card is that discounts can only be redeemed in-store," he said.
"This helps attract more visitors into the city centre and boosts our traders. It's one of many schemes on which we work closely with Swansea council to benefit our city centre businesses."
But Julie Williamson, who chairs Swansea Bay's Federation of Small Businesses, said the success of the city lay with all businesses - not just the shops.
"Of course we need a healthy retail sector, but what keeps those shops going is the workers from other offices and businesses coming into town every day, and shopping in their lunch breaks and after work.  And it's those other businesses which are leaving in increasing numbers."
An Indian postal worker who was accused of stealing less than $1 in 1984, has been cleared by a court after nearly 350 court hearings over 29 years.
[NEXT_CONCEPT]
Swansea is calling in international experts to help regenerate its city centre.