KUALA LUMPUR: The High Court will deliver its ruling on November 17 regarding Datuk Seri Najib Tun Razak and his son Datuk Mohd Nazifuddin’s appeal to stay bankruptcy proceedings.
Judicial Commissioner Suhendran Sockanathan @ Saheran Abdullah fixed the date after hearing submissions from both parties’ counsel.
The Inland Revenue Board initiated bankruptcy proceedings after both failed to settle tax arrears of RM1.69 billion and RM37.6 million respectively.
The appeal follows the Federal Court’s dismissal of their final appeal on October 16, 2023, upholding the High Court’s ruling on their tax obligations.
Najib’s counsel Muhammad Farhan Muhammad Shafee argued that continuing bankruptcy proceedings would render their appeal before the Special Commissioners of Income Tax meaningless.
“Failure to stay the bankruptcy proceedings would stifle the judgment debtor’s pending appeal before the SCIT and render it nugatory,“ said Muhammad Farhan.
He maintained that a stay would not prejudice the Government of Malaysia as judgment creditor.
Senior revenue counsel Norhisham Ahmad countered that bankruptcy proceedings constitute a lawful process when debtors cannot satisfy judgment debts.
He stated the creditor is entitled to take immediate steps to recover the judgment sum following the Federal Court’s conclusive dismissal.
Norhisham argued no special circumstances exist to grant a stay since no settlement agreement has been reached outside court.
The tax arrears cover assessment years from 2011 to 2017 for both father and son.
Two separate High Courts previously granted the IRB’s application for summary judgment to recover the tax arrears.
Both Najib and Mohd Nazifuddin lost their appeals to set aside these judgments at the Court of Appeal in September 2021.
The Federal Court had granted them leave to appeal the matter further on May 10, 2022. – Bernama
