The suit was filed by Hindraf chairman P Waythamoorthy and 18 others.
Hindraf’s lawyer S Karthigesan said Justice Azizah Nawawi ruled in chambers that the group should have named Naik as a party in the lawsuit, along with the government.
“The sole ground from the judge was that Zakir Naik should be named as a party in the suit. Not naming him makes this case unsustainable,” he told reporters after Azizah delivered her decision.
The court also ordered the 19 individuals to pay a cost of RM5,000 to the government.
Karthigesan said the group would appeal against today’s decision.
Perkasa president Ibrahim Ali, who was also present today, said he welcomed the court’s decision, adding that it “cleared” Naik of the bad perception created by certain groups.
“To me, anyone can come to court to seek justice if they have a solid case.
“But not come to court just because they have certain sentiments against another person and (they are) seeking publicity,” he said.
On March last year, Waytha and 18 other activists sued the government for allegedly harbouring Naik.
They claimed the preacher was capable of threatening national security and harmony, and that Naik’s presence in Malaysia was a serious threat to the country’s safety.
The group had sought a court order that Naik be considered a threat to Malaysia, and unfit to be a permanent resident.
They named Deputy Prime Minister and Home Minister Ahmad Zahid Hamidi, the immigration director-general, director-general of the National Registration Department, inspector-general of police and the government in their lawsuit.
Malay rights group Perkasa was made a party to the suit after applying to be an intervenor in the case along with the defendants.
Perkasa said it wanted to defend Naik, who is a recipient of the Tokoh Maal Hijrah award.
Last year, Naik caused a stir in Malaysia when it was reported that he was given PR status by the government about five years ago.
He was charged with heading an “unlawful association” and inciting youths to commit acts of terror and join global outfits such as the Islamic State (IS) in India.
India’s National Investigation Agency (NIA) said Naik had also “deliberately insulted” the religious beliefs of Hindus, Christians and Islamic sects like Shia, Sufi and Barelvi, and that his speeches had influenced recruits to the IS cause.
Zahid previously said the government would send Naik back if there was a request based on Mutual Legal Assistance by the Indian government.
However, he added that there was no reason to review the Islamic preacher’s PR status.
The NIA filed for a fresh red alert request to Interpol in December after the previous red alert application was rejected on the grounds that there were no formal charges filed against Naik when the application was made.
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