UBA Crushes Stallion Group In Court As Judge Affirms N156bn Debt, Upholds Receiver/Manager

United Bank for Africa (UBA) Plc has recorded a resounding, landmark victory in its N156 billion debt recovery battle against the Vaswani Brothers and their conglomerate, Stallion Group.

In a sweeping judgment that affirmed UBA’s strong corporate governance and credit discipline, Justice Daniel Osiagor of the Federal High Court, Ikoyi, Lagos, on Friday, granted all reliefs sought by the bank.

The court, in its decisive ruling, upheld the validity of the appointment of a Receiver/Manager over the assets of the debtors, affirmed the enforceability of the mortgage security executed in favour of UBA, and confirmed the liability of the guarantors to the huge indebtedness.

Justice Osiagor observed that the defendants did not dispute the existence of their indebtedness to UBA but merely challenged the amount claimed. The court held that the reconciliation of accounts between the parties did not in any way extinguish or negate the underlying indebtedness.

In a major affirmation of UBA’s enforcement rights, the court validated the appointment of the Receiver/Manager and confirmed his entitlement to take possession of the mortgaged property and seek appropriate protective orders to preserve the assets.

The court also dismissed objections raised by the 12th Defendant, holding that it failed to establish any proprietary rights over the mortgaged property. Consequently, the court ruled that its consent was not required for the creation of the mortgage.

In a further boost to UBA’s recovery efforts, the court restrained the defendants from diverting receivables due to them from government agencies, thereby reinforcing the bank’s ability to protect its recovery interests.

The judgment also unequivocally affirmed the liability of the guarantors, strengthening UBA’s legal position in pursuing full recovery of the outstanding obligations.

The decision represents a comprehensive, total victory for UBA, with the court resolving all issues in the bank’s favour and granting all the reliefs sought – a development that underscores the bank’s adherence to best-in-class risk management and legal due diligence in the creation of its securities.

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 enforce creditors’ interests.

It also reinforces the settled principle of law that disputes over the precise amount of an outstanding debt do not, by themselves, invalidate the underlying indebtedness or prevent creditors from exercising their lawful recovery rights.

The landmark judgment marks a major milestone in UBA’s determined efforts to recover its exposure to Stallion Group and safeguard the interests of the bank, its depositors, shareholders and other stakeholders.