Court backs UBA’s N156bn debt recovery bid against Stallion Group
The Federal High Court in Lagos has upheld United Bank for Africa (UBA) Plc’s appointment of a receiver/manager to recover an alleged N156.03bn debt from Stallion Group, ruling that the bank can enforce its mortgage securities and take possession of properties pledged against the loans.
Justice Daniel Osiagor, in a judgment delivered on Friday, held that the defendants did not dispute their indebtedness to the bank but contested the amount being claimed.
The ruling affirmed the validity of the mortgage arrangements, the liability of the guarantors and the appointment of Romeo Ese as receiver/manager, authorising him to take possession of the mortgaged assets and seek court orders to protect them.
The court also restrained the defendants from diverting payments due to them from government agencies, a measure aimed at preventing the funds from being used to frustrate the bank’s debt recovery efforts.
Stallion Group, owned by the Vaswani brothers, has been involved in the dispute with UBA since 2023, when the bank instituted legal proceedings against Stallion Nigeria Limited and several affiliated companies over the alleged outstanding debt.
In determining the issues before it, Osiagor ruled that the reconciliation of accounts between the parties did not extinguish the debt or deprive UBA of its right to enforce the securities provided for the loans.
The judge also dismissed an objection by Barbedos, the 12th defendant, which argued that its consent was required before the mortgage arrangements could be created.
Osiagor held that Barbedos had failed to establish a proprietary interest in the properties in question and, therefore, had no legal basis to challenge the mortgages on the grounds that its consent was not obtained.
