PUTRAJAYA: The Federal Court today allowed the bid by former prime minister Najib Razak and his son Nazifuddin to halt execution of a judgment ordering them to pay more than RM1.7 billion in tax arrears.
Chief Justice Tengku Maimun Tuan Mat granted the stay of execution after the Inland Revenue Board’s (LHDN) senior revenue counsel, Al-Hummidallah Idrus, informed the court that they had no objection to the request.
The duo’s lawyer, Farhan Shafee, told the court that LHDN had previously indicated during case management sessions it would agree to the grant of an interim stay pending disposal of their appeals challenging the summary judgment entered against them.
The other judges who sat with Tengku Maimun were Mary Lim and Rhodzariah Bujang.
The tax authority had filed a lawsuit against Najib in 2020, claiming tax arrears of over RM1.69 billion. It also claimed RM37.6 million from Nazifuddin.
LHDN had obtained the summary judgment against them on July 22, 2020, a decision which was affirmed by the Court of Appeal in September 2021.
Summary judgment is given when the court decides at a preliminary stage that a defendant has no defence to a plaintiff’s claim and that a full trial requiring the calling of witnesses to testify is unwarranted.
Premised on the judgment, a bankruptcy notice was filed against Najib last year after he failed to pay the judgment sum. Nazifuddin was likewise slapped with a bankruptcy notice in May.
Earlier this year, the Federal Court granted both leave to appeal in their effort to set aside the judgment.
