This was confirmed by their lawyer, Farhan Shafee, after proceedings held in chambers.

“Today’s decision was (on the application) to stay the bankruptcy proceedings to allow a hearing by the Special Commissioners of Income Tax to go on first,” said Farhan.

“However, deputy registrar Kamarul Aris Kamalluddin did not allow our application.

“We will be appealing immediately.”

He said there has been no declaration of bankruptcy at this point as only a notice was issued.

On Oct 16, 2023, the Federal Court ruled that Najib and Nazifuddin must settle the unpaid taxes after dismissing their appeal to quash the High Court’s decision against them.

The duo were appealing against two High Court decisions to allow the Inland Revenue Board’s (LHDN) application to enter summary judgments over their income tax arrears case.

A summary judgment is obtained when the court decides on a case through written submissions without a full trial and calling witnesses.

The High Court rulings had allowed LHDN to enter summary judgments to recover tax arrears from the duo from 2011 and 2017.

Both Najib and Nazifuddin lost their appeals in the Court of Appeal in September 2021 to set aside the summary judgments.

On May 10, 2022, they were granted leave to pursue their appeals with the Federal Court.