United Bank for Africa (UBA) Plc has secured a major legal victory in its debt recovery dispute with Stallion Group and the Vaswani brothers, after the Federal High Court in Ikoyi, Lagos, ruled in the bank’s favour on all issues presented for determination.
The judgment, delivered by Justice Daniel Osiagor of the court’s sixth division, granted the reliefs sought by UBA, affirming the validity of the appointment of a receiver/manager, the enforceability of the mortgage security and the liability of the guarantors.
The bank said the ruling strengthens its efforts to recover its outstanding exposure to Stallion Group, with the case involving a debt put at N156 billion.
According to the details of the judgment provided by UBA, the defendants did not dispute the existence of their indebtedness but contested the amount owed. The court also held that the reconciliation of accounts between the parties did not extinguish or negate the underlying debt.
In another key aspect of the ruling, the court upheld the appointment of the receiver/manager and affirmed his right to take possession of the mortgaged property and seek appropriate protective orders.
The court also dismissed an objection by the 12th defendant, which failed to establish proprietary rights over the mortgaged property. It consequently held that the defendant’s consent was not required for the mortgage.
The judgment further restrained the defendants from diverting receivables due to them from government agencies, a measure intended to protect the bank’s recovery interests.
UBA’s appointed receiver/manager is Romeo Ese.
The ruling represents a significant development in the bank’s efforts to enforce its security arrangements and recover the outstanding obligations. It also reinforces the legal position that a dispute over the precise amount owed does not, in itself, extinguish an acknowledged debt.
The decision underscores the importance of enforceable mortgage security, guarantor obligations and the authority of a duly appointed receiver/manager in debt recovery proceedings.
UBA said the court resolved all the issues in its favour and granted the reliefs it sought.
We do everything possible to supply quality news and information to all our valuable readers day in, day out and we are committed to keep doing this.
Your kind donation will help our continuous research efforts.
-Advertisement-
-Want to get the news as it breaks?-
