Judicial commissioner Suhendran Sockanathan @ Saheran Abdullah dismissed the appeals after finding no other form of prejudice that would justify a postponement, reported Berita Harian.
He also ordered them to pay RM7,000 each in costs.
The ruling affirmed an earlier decision by deputy registrar Kamarul Aris Kamalluddin to dismiss the applications by Najib and Nazifuddin to stay the bankruptcy proceedings against them.
The judge also rejected their argument that proceedings should be stayed over their ongoing appeals at the Inland Revenue Board (LHDN), saying such appeals do not prevent or suspend the tax recovery process.
“An appeal to LHDN does not remove the obligation to pay. There is no irreparable harm that would justify the court’s intervention,” he said.
He added that no bankruptcy petitions had been filed although bankruptcy notices were served in April 2021, saying LHDN was entitled to proceed.
The decision clears the way for LHDN to proceed with the bankruptcy action against the former prime minister and his son unless the outstanding taxes are settled.
Lawyer Wee Yeong Kang, representing the appellants, said he had been instructed to file an appeal against the decision.
Najib is appealing against two bankruptcy notices arising from additional tax assessments totalling RM1.46 billion, which have since increased with penalties and interest to RM1.69 billion.
The former prime minister maintains that the tax assessments are flawed and should not be enforced while related matters are being heard in other courts.
On June 25, 2019, the government, through LHDN, filed a claim against Najib, demanding that he settle the unpaid taxes with 5% annual interest from the date of judgment, along with costs and any other compensation deemed appropriate by the court.
On Oct 16, 2023, the apex court dismissed their appeals to set aside the High Court’s summary judgment ordering them to pay RM1.69 billion and RM37.6 million in unpaid taxes and penalties.
LHDN alleged that Najib failed to pay income tax from 2011 to 2017 within 30 days of the assessment notices issued by LHDN.