
A three-member bench, chaired by Abdul Karim Abdul Jalil, said in a civil action, the “protagonist” must be named as a party.
“Not naming him (Naik) renders the suit incompetent,” said Karim, who sat with M Nantha Balan and Azman Abdullah.
The bench also ordered the appellants to pay the government RM5,000 in costs.
Lawyers Gopal Sri Ram, R Kengadharan and S Karthigesan appeared for the appellants while senior federal counsel Suzana Atan represented the government.
Lawyer Adnan Seman acted on behalf of Perkasa president Ibrahim Ali, who is an intervenor in the case.
In early 2018, then High Court judge Azizah Nawawi allowed then deputy prime minister Ahmad Zahid Hamidi to strike out an originating summons.
Others named were the immigration department director-general, the national registration department director-general and the inspector-general of police.
Waythamoorthy and the rest then sought a declaration that Naik was a threat to national security and not fit to receive permanent resident status.
However, they failed to name Naik as a defendant to rebut the accusation made against him.
They also claimed that Naik had encouraged terrorism, had been banned from entering several countries over suspected involvement with certain terrorist groups, and had instigated foreigners in the country to disturb the peace.