In this study, a passive suppression scheme for nonlinear flutter problem of composite panel, which is believed to be more reliable than the active control methods in practical operations, is proposed. This scheme utilizes a piezoelectric inductor-resistor series shunt circuit. The finite element equations of motion for an electromechanically coupled system is derived by applying the Hamilton\`s principle. The aerodynamic theory adopted for the present study is based on the quasi-steady piston theory, and von-barman nonlinear strain-displacement relation is also applied. The passive suppression results for nonlinear panel flutter are obtained in the time domain using the Newmark-$eta$ method. To achieve the best damping effect, optimal shape and location of fille piezoceramic (PZT) patches are determined by using genetic algorithms. The effects of passive suppression are investigated by employing in turn one shunt circuit and two independent shunt circuits. Feasibility studies show that two independent inductor-resistor shunt circuits suppresses flutter more effectively than a single shunt circuit. The results clearly demonstrate that the passive damping scheme that uses piezoelectric shunt circuit can effectively attenuate the flutter.