Creditor Not Required to Prove Financial Capacity to Extend Loan: Supreme Court Slaps ₹32 Lakh Fine on Defaulter in S.138 NI Act Case

The Supreme Court ruled that a creditor is not required to prove their financial capacity to extend a loan in a Section 138 NI Act case. The court also imposed a ₹32 lakh fine on the defaulter. This decision clarifies that the focus should be on the dishonored cheque and the debt's existence, not the creditor's financial standing. The ruling reinforces the legal framework for cheque dishonor cases, emphasizing the importance of fulfilling financial obligations. It also underscores the court's commitment to enforcing financial discipline and protecting creditors from undue scrutiny.