Amanze Chinonye
A Federal High Court in Lagos has ruled in favour of United Bank for Africa (UBA) Plc in its ₦156. 03 billion debt recovery dispute with Stallion Group and the Vaswani brothers, upholding the appointment of the bank’s receiver-manager, its mortgage security and the liability of guarantors, Prime Business Africa reports.
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Justice Daniel Osiagor, sitting at the Federal High Court in Ikoyi, granted the reliefs sought by UBA and affirmed the court’s jurisdiction to hear the case, according to reports on Friday’s judgment.
The ruling also upheld the appointment of Romeo Ese as receiver-manager and his authority to take possession of mortgaged properties and seek protective orders.
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The court further restrained the defendants from diverting receivables due to them from government agencies, strengthening UBA’s ability to pursue recovery of the disputed debt. It also held that a reconciliation of accounts between the parties did not extinguish the underlying indebtedness or invalidate the bank’s security.
According to the account of the ruling, the defendants disputed the amount owed rather than the existence of the debt. The court also held that the reconciliation of accounts did not extinguish the indebtedness and upheld the guarantors’ liability.
The court dismissed an objection by Barbedos Ventures Limited, the 12th defendant, ruling that the company had failed to establish proprietary rights over the mortgaged property. Its consent was therefore not required for the mortgage, the account said.
The case followed earlier orders granted by Justice Akintayo Aluko allowing UBA to take control of assets belonging to Stallion Nigeria Ltd. and its affiliates in Lagos, Port Harcourt and Kano, and to freeze their funds held in Nigerian banks. The defendants’ attempts to overturn those orders were unsuccessful in December 2023.
The defendants include Von Automobile Nigeria, Stallion Motors, The Honda Place and company director Sunil Vaswani. Stallion Group has described UBA’s debt claim as “entirely false”.
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The ruling strengthens UBA’s position in its efforts to recover the disputed debt and enforce its security interests. The bank is also using the same receiver-manager in a separate recovery effort involving ₦61.45 billion linked to Western Metal Products Co.
The judgment underscores the distinction between disputing the amount owed and challenging the existence of a debt or the validity of a creditor’s security.
The latest ruling therefore gives UBA a significant legal victory at the Federal High Court, while the dispute remains subject to further proceedings at the appellate level.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
