Since Shareholders Of Corporate Debtor Do Not Fall Within Definition Of “Aggrieved Party”, Appeal Filed U/S 61 Of IBC Not Maintainable: NCLAT

The National Company Law Appellate Tribunal (NCLAT) in New Delhi ruled that shareholders cannot appeal under Section 61 of the Insolvency and Bankruptcy Code (IBC) as aggrieved parties. The case involved a dispute where shareholders sought to challenge a resolution plan approved by the Committee of Creditors (CoC). The tribunal held that only those directly affected by the resolution plan, such as creditors, have the standing to appeal. The ruling emphasized that shareholders, being residual claimants, do not have the same rights as creditors in insolvency proceedings. This decision clarifies the scope of appeal rights under the IBC and reinforces the priority of creditors’ interests in insolvency cases. The ruling provides important guidance on the legal standing of different stakeholders in insolvency proceedings and the limitations on shareholders’ rights to challenge resolution plans.