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Debt Collection India: A CFO's Guide to Recovery Routes

Published March 15, 2026·English

India gives foreign creditors three distinct routes depending on the claim: IBC Section 9 insolvency proceedings, Commercial Courts summary judgment, or Section 138 cheque prosecution.

01 - IBC Section 9 pressures through insolvency

Filing under Section 9 of the Insolvency and Bankruptcy Code lets an operational creditor initiate insolvency proceedings against a defaulting company, which often produces settlement pressure well before the process concludes.

02 - Commercial Courts fast-track summary judgment

For claims that meet the threshold, India's Commercial Courts framework allows summary judgment procedures that move considerably faster than ordinary civil litigation.

03 - Section 138 gives cheques real teeth

A dishonored cheque in India can trigger criminal liability under Section 138 of the Negotiable Instruments Act, a powerful lever that has no direct equivalent in most Western jurisdictions.

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Debt Collection India: A CFO's Guide to Recovery Routes: the Full Guide

Debt collection India: IBC Section 9, Commercial Courts summary judgment, Section 138, arbitration enforcement. CFO-level guide from Cosmopolite.

Chapters

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00:00Why India cases need a different approach
The combination of insolvency pressure, fast-track courts, and cheque-based criminal exposure gives foreign creditors more tools than they typically expect.
02:15IBC Section 9 pressures through insolvency
How initiating insolvency proceedings can accelerate payment without a full case.
04:30Commercial Courts fast-track summary judgment
When the summary judgment route applies and how much faster it moves.
06:10Section 138 gives cheques real teeth
Why a bounced cheque changes the entire recovery strategy in India. No collection, no fee.
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