COURT RULES IN UBA’S FAVOUR IN ₦156BN DEBT RECOVERY CASE AGAINST STALLION GROUP
Federal High Court upholds receiver/manager’s appointment, affirms guarantors’ liability
The Federal High Court sitting in Ikoyi, Lagos, has ruled in favour of United Bank for Africa (UBA) Plc in its ₦156 billion debt recovery proceedings against Stallion Group and the Vaswani brothers, upholding the bank’s appointment of a receiver/manager and affirming the liability of guarantors.
The judgment, delivered on Friday by Justice Daniel Osiagor of Court 6, granted the reliefs sought by UBA, according to information provided on the ruling.
The court reportedly held that the defendants did not dispute the existence of their indebtedness to the bank but contested the amount owed. It further ruled that the reconciliation of accounts between the parties did not extinguish the underlying debt.
The court also upheld the appointment of the bank’s receiver/manager, Romeo Ese, affirming his entitlement to take possession of the mortgaged property and seek appropriate protective orders.
In another significant aspect of the ruling, the court dismissed the objection of the 12th defendant, finding that it had failed to establish proprietary rights over the mortgaged property. Consequently, its consent was not required for the mortgage, according to the information on the judgment.
The court further restrained the defendants from diverting receivables due to them from government agencies, a measure intended to protect the bank’s debt recovery interests.
The ruling has implications for the enforcement of creditors’ rights, particularly regarding mortgage security, guarantees and the authority of duly appointed receivers in debt recovery proceedings.
It also underscores the distinction between disputing the amount of an outstanding obligation and denying the existence of the underlying debt.
The judgment marks a significant development in UBA’s efforts to recover its exposure to Stallion Group. The full terms of the court’s orders will determine the next steps in the recovery process.
