KUALA LUMPUR (July 29): The High Court has dismissed former prime minister Datuk Seri Najib Razak and his son Datuk Nazifuddin Najib's applications to stay bankruptcy proceedings for their failure to settle RM1.69 billion and RM37.64 million in tax arrears to the Inland Revenue Board (IRB).

Kuala Lumpur High Court (Insolvency) Deputy Registrar Kamarul Aris Kamalluddin delivered his decision in chambers on Monday.

Najib's counsel, Farhan Shafee, confirmed the matter and said that they would be "immediately" appealing the decision to a High Court judge.

The two men had applied for the stay on the grounds that the actual merits of the additional tax assessment is still at the Special Commissioner of Income Tax (SCIT) stage. They want the SCIT hearing to go on before any determination is made on the bankruptcy proceedings.

Explaining further, Farhan said that the previous matter, which had been determined by the various courts including the apex court, was merely a determination in relation to the assessment, but not the merits of the said assessment. The merits of the assessment can only be determined by the SCIT.

In October last year, a five-member Federal Court panel dismissed Najib and Nazifuddin's appeals against summary judgements compelling the ex-PM and his son to pay RM1.69 billion and RM37.64 million in tax arrears to the IRB.

The father and son were appealing against the two High Court summary judgements entered against them in July 2020 to recover tax arrears from them, for the period between 2011 and 2017.

The judgement was awarded to the IRB on the grounds that the defendants have no triable issues with regard to their defence, and if the matter were to proceed to a full trial, it would have the effect of delaying a judgement entered on the defendants.

The appellate court had upheld the High Court decision in October 2021.

'No declaration of bankruptcy'

On Monday, Farhan also stressed that there was no declaration of bankruptcy at this juncture as there had only been the issuance of the said notice.

With Monday's decision, the bankruptcy application is set to continue. However, lawyer Wee Yeong Kang, who also appeared for Najib and his son, stressed that there were still other pending interlocutory applications before the court.

The court set Aug 22 for case management on the matter.