Unable to pay credit card bill. Possibility to settle for less amount?

A Credit Card is normally an unsecured credit given by bank to you, meaning the bank has not created any security interest (like mortgage, collateral etc) should you fail to pay up their dues. 

The Bank can take the following actions against you:

1. Report your name to the Credit Bureau of India Ltd (CIBIL) which maintains a list of defaulters. This ensures that you do not get another credit card or loan from other banks in the future. It also damages your credit rating for future credit. 

2. File a civil suit for recovering its dues from you. This is made in the local civil court. These cases go on for several years, and the outcome could be that the court orders you to pay up the dues in which case you will now be legally bound to pay up. 

3. If you have any assets with the bank whose credit card you hold, it may attach those assets as lien to recover its dues. 

4. Some banks could also file criminal charges on you under section 406/420 cheating of IPC. This is normally done to intimidate you to settle your dues with the bank.

But the situation will be different if you are an insolvent. Then you can plead the same in Court and the Court shall decide your punishment, however you shall not be liable to pay any amount.