UBA wins ruling in N156bn debt recovery suit 

…as judge upholds receiver

United Bank for Africa (UBA) Plc has secured a court ruling in its three-year effort to recover money it says Stallion Group owes, with the Federal High Court upholding the bank’s receiver, mortgage security and the liability of guarantors.

Justice Daniel Osiagor of the Federal High Court in Ikoyi, Lagos, resolved all issues in UBA’s favour and granted all the reliefs sought, according to a report by MoneyCentral on the judgment delivered by the court.

The court confirmed Romeo Ese Michael as receiver-manager, with the right to take possession of the mortgaged property and seek protective orders.

It also restrained the defendants from diverting payments owed to them by government agencies, reinforcing UBA’s ability to protect its recovery interests.

The court held that the defendants did not dispute their indebtedness but contested the amount owed. It further ruled that the reconciliation of accounts did not cancel the debt.

The court also dismissed objections raised by the 12th defendant, Barbedos Ventures Limited, holding that it had failed to establish any proprietary rights over the mortgaged property. Consequently, its consent was not required for the creation of the mortgage, and its objections were rejected.

ALSO READ: Africa’s top 100 banks: UBA climbs to 15th position as Tier 1 capital of Nigerian banks hit $15.2 billion in 2026

UBA filed the suit in October 2023, claiming that Stallion Group owed N156.03 billion. Stallion, however, described the claim as “entirely false.” The court’s written judgment and Stallion’s response to the ruling were not immediately available.

The case began when Justice Akintayo Aluko granted UBA orders to take over assets belonging to Stallion Nigeria Ltd. and its affiliates in Lagos, Port Harcourt and Kano, and to freeze their funds across Nigerian banks.

Stallion’s attempts to lift the orders failed in December 2023. The defendants include Von Automobile Nigeria, Stallion Motors, The Honda Place and director Sunil Vaswani.

The ruling reinforces the principle that disputing the amount owed does not, by itself, prevent a creditor from enforcing its security. UBA is also using the same receiver to pursue N61.45 billion linked to Western Metal Products Co.

The decision represents a comprehensive victory for UBA, with the court resolving all issues in the bank’s favour and granting the reliefs sought.

The ruling is also 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 protect creditors’ interests.

The judgment marks a major step in UBA’s efforts to recover its exposure to Stallion Group and safeguard the interests of the bank and its stakeholders.