16 Jun 2026
Trilegal represented RP of Bhadrashwar Vidyut before NCLAT Full Bench
29 Aug 2025
29 Aug 2025
Matter Overview | Trilegal represented the Resolution Professional of Bhadrashwar Vidyut Pvt. Ltd. (Corporate Debtor) in an appeal filed by Park Energy Pvt. Ltd. before the National Company Law Appellate Tribunal, Chennai (NCLAT). The Appellant, a shareholder/promoter, had challenged the admission of the Section 7 application against the Corporate Debtor, claiming locus to appeal as an “aggrieved person”.
The matter was initially placed before a two-member Bench of the NCLAT, but in view of conflicting precedents on whether shareholders/promoters fall within the ambit of “aggrieved persons” under Section 61 of the IBC, 2016, the issue was referred to a larger Bench (three-member Bench). By judgment dated 22.07.2025, the larger Bench answered the issue in negative and held that shareholders/promoters cannot be treated as “aggrieved person” under Section 61 of the Code and therefore have no locus to maintain such appeals.
This full-bench decision settles the hitherto unsettled legal position by holding shareholders/promoters do not fall within the ambit of “aggrieved persons” under Section 61 of the IBC. in this regard it also clarifies the position of law that was unclear on account of conflicting judicial precedents.
Matter Significance | The three-member NCLAT (Chennai) conclusively resolved the conflicting legal positions taken previously by coordinate benches on whether shareholders qualify as “aggrieved persons” under Section 61 IBC. The Tribunal held that shareholders, being mere investors with profit interest but no administrative control, cannot maintain appeals against admission of CIRP proceedings. It clarified that references to “any person aggrieved” in prior judgements, must be read contextually as confined to creditors, not shareholders, whose interests are adequately safeguarded by the Resolution Professional or liquidator. Recognising shareholder appeals would, in its view, run contrary to the Code’s object of timely resolution, cause multiplicity of proceedings, and amount to abuse of process. Accordingly, it affirmed that locus under Section 61 is restricted to creditors and the corporate debtor and expressly answered the reference that applications at the behest of shareholders are not maintainable.
The Trilegal Corporate Team advising on the matter was led by Partner: Ramakant Rai; and supported by Counsel: Ravin Kapur; Principal Consultant: Varun Tikmani; and Associate: Apoorva Chandrachur.
About Trilegal
Trilegal is a leading full-service law firm in India with over 25 years of experience, trusted for its in-depth expertise and client-centric approach. The firm advises a diverse set of clients, including Fortune 500 companies, global investment funds, major Indian conglomerates, domestic and international banks, technology and media giants, family offices, and high-net-worth individuals. With more than 145 partners operating under a distinctive lockstep model, Trilegal is the largest equity partnership in the country. The firm retains over 1,100 professionals across Mumbai, Delhi, Bengaluru, and Gurugram offices.
Trilegal has consistently been recognised among India’s top-tier firms in leading legal directories such as Chambers & Partners (Asia Pacific and Global), Legal 500 Asia Pacific, and Benchmark Litigation. It has also earned several prestigious accolades, including being named Best Overall Law Firm by India Business Law Journal (IBLJ) 2025, Innovative Lawyers in Disputes & Crisis Management by the Financial Times (FT) Innovative Lawyers Asia-Pacific Awards in 2025, M&A Firm of the Year by IFLR Asia-Pacific in 2024, Law Firm of the Year by Deal Volume at the VCCircle Awards in 2024, India Deal Firm of the Year at the Asian Legal Business (ALB) India Law Awards in 2023, and Best Law Firm to Work by Vahura in 2022.
For more information, please get in touch with Prakruti Jani | Mob: +91-9867868976 | BD@trilegal.com
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