United Bank for Africa (UBA) Plc has secured a major victory in its N156.03 billion debt recovery dispute with Stallion Group and companies linked to the Vaswani brothers, as the Federal High Court in Lagos upheld the bank’s enforcement rights over the disputed debt.
Gatekeepers News reports that Justice Daniel Osiagor of the Federal High Court, Ikoyi, Lagos, delivered the judgment on Friday, October 16, ruling in favour of UBA on the issues presented for determination and granting the reliefs sought by the bank.
The court affirmed the validity of the appointment of Romeo Ese as receiver/manager, upheld the mortgage securities and confirmed the liability of the guarantors. It also authorised the receiver/manager to take possession of the mortgaged properties and seek protective orders.
The judge held that the defendants did not dispute their indebtedness to the bank but challenged the amount claimed. He further ruled that the reconciliation of accounts between the parties did not extinguish the underlying debt.
The court also dismissed an objection by the 12th defendant, ruling that it had failed to establish proprietary rights over the mortgaged property and that its consent was therefore not required for the mortgage. The defendants were also restrained from diverting receivables due to them from government agencies.
The dispute dates back to 2023, when UBA initiated proceedings to recover the alleged outstanding debt from Stallion Group and associated companies. The controversy involved loan obligations, mortgage securities and allegations concerning payments linked to a Federal Government vehicle supply contract.
Stallion Group had previously challenged aspects of the bank’s claims, citing repayments and the reconciliation of accounts. The latest judgment, however, reinforces UBA’s position that the reconciliation process did not invalidate the underlying indebtedness or its right to enforce the securities.
Despite the ruling, Stallion Group has filed an appeal at the Court of Appeal and applied for a stay of execution pending the determination of the appeal, indicating that the legal battle is continuing.
