Court of Appeal Allows Najib, Son’s Application to Stay Bankruptcy Proceedings

PUTRAJAYA: The Court of Appeal today allowed the application of former Prime Minister Datuk Seri Najib Tun Razak and his son, Datuk Mohd Nazifuddin, to stay bankruptcy proceedings against them.

A three-judge panel consisting of Datuk Dr Alwi Abdul Wahab, Datuk Dr Shahnaz Sulaiman and Datuk Ong Chee Kwan allowed Najib and Mohd Nazifuddin’s appeal to set aside the High Court’s decision on 17 November 2025, which had dismissed their application for the stay.

Delivering the unanimous decision, Alwi said the decision to grant the stay was appropriate because there are specific issues raised by the appellants to be heard before the Special Commissioner of Income Tax (SCIT), which constitutes sufficient grounds to allow the stay.

Najib and Mohd Nazifuddin had previously applied for the bankruptcy proceedings against them to be stayed pending the outcome of their appeal before the Special Commissioner of Income Tax (SCIT) regarding the additional tax assessments issued by the Inland Revenue Board (LHDN).

The bankruptcy proceedings stemmed from separate High Court decisions that allowed LHDN’s applications for summary judgment against the father and son concerning tax arrears for the assessment years 2011 to 2017.

LHDN is seeking to recover tax arrears of RM1.69 billion from Najib and RM37.6 million from Mohd Nazifuddin. 

BERNAMA