MSME registration certificate challenge may proceed by writ, with insolvency proceedings stayed pending High Court consideration.

An appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 could not be used to finally adjudicate the validity of an MSME registration certificate. As the certificate was already on record and could affect the position of secured creditors, the appellant was permitted to pursue a writ petition before the jurisdictional High Court challenging that certificate. The Court directed expeditious consideration of the writ petition and kept the proceedings before the adjudicating authority and the corporate insolvency resolution process stayed in the meantime, leaving the certificate's validity open for High Court examination.

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Issues: Whether the validity of the MSME registration certificate could be examined in an appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016, and whether the appellant should be permitted to pursue a writ petition before the jurisdictional High Court challenging the certificate, with consequential stay of the insolvency proceedings.

Analysis: The appeal lay within the limited confines of Section 62 of the Insolvency and Bankruptcy Code, 2016, and the validity of the MSME registration certificate could not be finally adjudicated in that forum. Since the certificate had been placed on record and its consequences could affect the secured creditors, the appellant was allowed to approach the jurisdictional High Court by way of writ petition. The Court also directed expeditious consideration of such writ petition and ordered that the proceedings before the adjudicating authority and the corporate insolvency resolution process remain stayed meanwhile.

Outcome: The appellant was permitted to file a writ petition challenging the MSME registration certificate, the related insolvency proceedings were stayed, and the validity of the certificate was left open for consideration by the High Court.

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