UBA Secures Major Court Victory in Debt Recovery Involving Vaswani Brothers, Stallion Group
- The Federal High Court in Lagos reportedly ruled in favour of UBA in its debt recovery dispute with Stallion Group over a claim of ₦156.03 billion
- The court upheld the appointment of a receiver-manager and restrained the defendants from diverting receivables owed by government agencies
- According to court details, the Defendants did not dispute their indebtedness, only the amount owed
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
United Bank for Africa (UBA) Plc has secured a reported court victory in its debt recovery dispute with Stallion Group, with the Federal High Court in Ikoyi, Lagos, upholding the appointment of the bank’s receiver-manager, its mortgage security and the liability of guarantors.
Justice Daniel Osiagor reportedly resolved the issues in UBA’s favour and granted the reliefs sought by the bank, according to a statement seen by Legit.ng.
Source: UGC
The ruling affirms the receiver-manager’s authority to take possession of the mortgaged property and seek protective court orders. It also restrains the defendants from diverting receivables due to them from government agencies.
Court upholds receiver’s appointment, mortgage security
The court upheld the appointment of Romeo Ese Michael as receiver-manager and affirmed his right to take possession of the mortgaged property.
It also dismissed objections by the 12th defendant, Barbedos Ventures Limited, which reportedly failed to establish proprietary rights over the property. The court held that the company’s consent was therefore not required for the mortgage.
According to the report, the defendants did not dispute their indebtedness but contested the amount owed. The court also held that the reconciliation of accounts did not extinguish the debt.
The Federal High Court further affirmed its jurisdiction to hear the case and upheld the liability of the guarantors.
Why UBA filed suit in October 2023
UBA filed the suit in October 2023, claiming that Stallion Group owed it ₦156.03 billion. Stallion has described the claim as “entirely false.”
The dispute followed an earlier order by Justice Akintayo Aluko allowing UBA to take over assets belonging to Stallion Nigeria Ltd. and its affiliates in Lagos, Port Harcourt and Kano, while freezing their funds across Nigerian banks.
Attempts by the defendants to overturn those orders failed in December 2023. The defendants include Von Automobile Nigeria, Stallion Motors, The Honda Place and director Sunil Vaswani.
The ruling reinforces the principle that a dispute over the amount owed does not, by itself, prevent a lender from enforcing its security.
Source: UGC
UBA is also using the same receiver-manager to pursue a separate ₦61.45 billion recovery linked to Western Metal Products Co.
The ruling reinforces UBA’s legal position in enforcing its mortgage security and seeking debt recovery from the primary borrowers and their guarantors.
Source: Legit.ng
