N156bn Debt: UBA Wins Big in Court Case Against Vaswani Brothers, Stallion Group

The Federal High Court in Ikoyi, Lagos, has upheld United Bank for Africa Plc’s recovery measures in a N156bn debt dispute involving the Vaswani brothers and Stallion Group, affirming the liability of guarantors and restraining the defendants from diverting receivables due to them from government agencies.

The judgment, delivered by Justice Daniel Osiagor, also upheld the appointment of a receiver/manager by the bank and affirmed his right to take possession of the mortgaged property.

The court further granted all the reliefs sought by UBA, according to details of the judgment made available.

A key finding was that the defendants did not dispute their indebtedness to the bank but challenged the amount claimed.

The court held that the reconciliation of accounts between the parties did not extinguish or negate the underlying debt.

It also affirmed the receiver/manager’s entitlement to seek protective orders in the course of enforcing the bank’s recovery rights.

In a related development, the court dismissed an objection by the 12th defendant, which failed to establish any proprietary rights over the mortgaged property.

The court consequently held that the defendant’s consent was not required for the mortgage.

The ruling also upheld the liability of the guarantors, reinforcing UBA’s position in seeking repayment of the outstanding obligations.

The bank appointed Romeo Ese as receiver/manager.

The order restraining the defendants from diverting receivables due from government agencies is another significant aspect of the judgment, as it seeks to prevent the movement of those funds away from the recovery process.

The decision marks a major development in UBA’s efforts to recover its exposure to Stallion Group.