Court of Appeal Stays Bankruptcy Proceedings Against Najib Razak

The Court of Appeal in Putrajaya unanimously granted a stay of bankruptcy proceedings against Najib Razak, the former Prime Minister of Malaysia, and his son, Mohd Nazifuddin Najib, on September 4, 2026. This ruling reverses a November 2025 High Court decision that had previously dismissed their application to halt the proceedings.

The bankruptcy actions were initiated by the Inland Revenue Board to recover unpaid tax arrears from 2011 to 2017. The totals include 1.69 billion ringgit for Najib and 37.6 million ringgit for Nazifuddin. Justice Dr Alwipa Abdul Wahab stated that the previous court erred by defining irreparable harm only as monetary loss, noting that bankruptcy carries distinct and irreversible consequences.

The stay remains in effect while the tax assessments are disputed before the Special Commissioner of Income Tax. As part of the ruling, the court awarded 30,000 ringgit in costs to both Najib and Nazifuddin.