Justice Mohd Nazlan Mohd Ghazali made the order after ruling that the suit filed in June was defective.
“The current lawsuit failed to name the Pekan Umno office bearer, as required under Section 9(c) of the Societies Act,” he said.
However, he said the non-compliance was not enough on its own to justify striking out the suit.
He ordered deputy public prosecutor Allan Suman Pillai to refile the suit within seven days, failing which he said the court would strike out the suit.
Allan said he would file a new suit on Sept 6.
Nazlan then set Sept 9 for next mention.
Pekan Umno was represented by lawyer M Reza Hassan.
It is understood that the division’s office bearer is former prime minister Najib Razak.
The government is seeking to forfeit RM700,000 from Pekan Umno.
This is part of the RM270 million which the Malaysian Anti-Corruption Commission is attempting to recover from 41 individuals and organisations in funds allegedly channelled from former prime minister Najib‘s account.