Court backs UBA in N156bn debt recovery case against Stallion Group

The Federal High Court in Lagos has ruled in favour of United Bank for Africa (UBA) Plc in its N156bn debt recovery dispute with Stallion Group, upholding the appointment of a receiver/manager and affirming the liability of guarantors.

Justice Daniel Osiagor, sitting at the Federal High Court in Ikoyi, granted the reliefs sought by the bank, including an order restraining the defendants from diverting receivables due to them from government agencies.

The judgment also affirmed the receiver/manager’s authority to take possession of the mortgaged property and seek protective orders to safeguard the bank’s recovery interests.

According to details of the judgment provided by UBA, the defendants did not dispute that they owed the bank but contested the amount claimed. The court held that reconciliation of accounts between the parties did not extinguish or negate the underlying indebtedness.

The court also dismissed an objection by the 12th defendant, ruling that it had failed to establish proprietary rights over the mortgaged property. Its consent was therefore not required for the mortgage, according to the judgment summary.

UBA’s appointment of Romeo Ese as receiver/manager was upheld, reinforcing his authority to take steps to protect the bank’s interests in the debt recovery process.

The ruling resolves the issues raised in the proceedings in the bank’s favour and strengthens its legal position in pursuing recovery of the outstanding debt.

The judgment also underscores the enforceability of mortgage security and guarantees, as well as the authority of a duly appointed receiver/manager to act within the scope of the appointment.

UBA described the decision as a significant milestone in its efforts to recover its exposure to Stallion Group and protect the interests of the bank and its stakeholders.

The case involves Stallion Group and the Vaswani brothers. The judgment details provided by the bank did not include a breakdown of the outstanding debt or the court’s full reasoning on the amount claimed.