United Bank for Africa, UBA, Plc has secured a court ruling in its three-year effort to recover funds it says Stallion Group owes.
The Federal High Court upheld the bank’s receiver-manager appointment, its mortgage security and the liability of the guarantors.
Justice Daniel Osiagor of the Federal High Court in Ikoyi, Lagos, resolved all issues in UBA’s favour and granted all the reliefs sought, according to a report by MoneyCentral on the judgment delivered by the court.
The court confirmed Romeo Ese Michael as receiver-manager, with the authority to take possession of the mortgaged property and seek protective orders.
It also restrained the defendants from diverting payments owed to them by government agencies, thereby reinforcing the bank’s ability to protect its recovery interests.
The court held that the defendants did not dispute their indebtedness but contested the amount owed. It further ruled that the reconciliation of accounts did not extinguish the debt.
The court also dismissed objections raised by the 12th defendant, Barbedos Ventures Limited, holding that it had failed to establish any proprietary rights over the mortgaged property. Consequently, its consent was not required for the creation of the mortgage, and its objections were rejected.
When UBA filed the suit in October 2023, it claimed that ₦156.03 billion was owed to the bank.
Stallion Group has described the claim as “entirely false". However, the court’s written judgment and Stallion Group’s response to the ruling were not immediately available.
The case began when Justice Akintayo Aluko granted UBA orders to take over the assets of Stallion Nigeria Ltd. and its affiliates in Lagos, Port Harcourt and Kano, and to freeze their funds across Nigerian banks. The defendants’ attempts to lift the orders failed in December 2023.
The defendants include Von Automobile Nigeria, Stallion Motors, The Honda Place and director Sunil Vaswani.
The ruling reinforces a principle Nigerian lenders rely on: disputing the amount owed does not, in itself, prevent a creditor from enforcing its security. UBA is using the same receiver-manager to pursue N61.45 billion linked to Western Metal Products Co.
The decision represents a significant victory for UBA, with the court resolving all issues in the bank’s favour and granting the reliefs sought.
The ruling is particularly significant for the enforcement of creditors’ rights in Nigeria, underscoring the legal validity of properly constituted security arrangements and the authority of duly appointed receivers to protect and enforce creditors’ interests.
The judgment marks a major milestone in UBA’s efforts to recover its exposure to Stallion Group and safeguard the interests of the bank and its stakeholders.
Key highlights of the judgment
The Federal High Court in Ikoyi affirmed its jurisdiction to hear the case.
The judgment was delivered by Justice Daniel Osiagor of Court 6 of the Federal High Court, Ikoyi, Lagos.
The defendants did not dispute their indebtedness but contested the amount owed.
The guarantors were held liable.
The appointment of the receiver-manager was upheld as valid.
The receiver-manager’s right to take possession of the mortgaged property was affirmed.
The receiver-manager was held entitled to seek protective orders.
The court held that the reconciliation exercise did not extinguish the indebtedness.
The objection raised by the 12th defendant was dismissed because it failed to establish any proprietary rights over the mortgaged property. Its consent was therefore not required for the mortgage.
The defendants were restrained from diverting receivables due to them from government agencies.
UBA wins N156bn debt recovery suit against Stallion Group, Vaswani Brothers