Chinwe Odita
United Bank for Africa (UBA) Plc has secured a landmark victory in its N156 billion debt recovery suit against Stallion Group and its promoters, the Vaswani brothers.
Justice Daniel Osiagor of the Federal High Court, Ikoyi, Lagos, delivered the judgment on Friday, resolving all issues in favour of the bank and granting all reliefs sought.
The court affirmed its jurisdiction to hear the matter and upheld the appointment of Romeo Ese as Receiver/Manager over the assets of Stallion Group.
In the comprehensive judgment, the court held that the defendants did not dispute their indebtedness to UBA but only contested the amount owed. It further ruled that the reconciliation exercise between the parties did not negate the indebtedness.
The court also affirmed the liability of the guarantors and validated the Receiver/Manager’s right to take possession of the mortgaged property and seek protective orders.
On the objection raised by the 12th defendant, the court dismissed it on the grounds that it failed to establish any proprietary rights over the mortgaged property, holding that its consent was therefore not required for the mortgage.
In a significant order to safeguard recovery, the court restrained the defendants from diverting receivables due to them from government agencies.
According to the bank, the decision reinforces creditors’ rights in Nigeria and underscores the legal validity of properly constituted security arrangements and the authority of duly appointed receivers to enforce creditors’ interests.
It also reinforces the principle that disputes over the precise amount of outstanding debt do not invalidate the underlying indebtedness or prevent creditors from exercising lawful recovery rights.
The judgment is considered a major milestone in UBA’s efforts to recover its exposure and protect the interests of its stakeholders.
For a better society
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