UBA wins major Court battle against Stallion Group over outstanding debt

United Bank for Africa (UBA) Plc has secured a major legal victory in its debt recovery proceedings against Stallion Group, after the Federal High Court in Lagos upheld the bank’s claims and granted all the reliefs it sought.

The judgment, delivered on Friday by Justice Daniel Osiagor of Court 6 of the Federal High Court, Ikoyi, affirmed the validity of the appointment of a Receiver/Manager, the enforceability of the mortgage security and the liability of the guarantors.

The court also restrained the defendants from diverting receivables due to them from government agencies, strengthening UBA’s efforts to recover its outstanding exposure.

In its ruling, the court observed that the defendants did not dispute their indebtedness to the bank but challenged the amount being claimed.

It held that the reconciliation of accounts between the parties did not extinguish or invalidate the underlying debt, dismissing the argument that the exercise negated their financial obligations.

The court further upheld the Receiver/Manager’s appointment and affirmed his authority to take possession of the mortgaged property and seek appropriate protective orders to safeguard the bank’s interests.

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It also dismissed objections raised by the 12th defendant, ruling that the party had failed to establish any proprietary rights over the mortgaged property.

Consequently, the court held that the 12th defendant’s consent was not required for the creation of the mortgage, rejecting its challenge to the security arrangement.

The judgment equally affirmed the liability of the guarantors, reinforcing UBA’s legal grounds for pursuing recovery of the outstanding obligations.

The Federal High Court also affirmed its jurisdiction to hear the matter, resolving the issues submitted for determination in the bank’s favour.

The ruling represents a significant development in UBA’s efforts to recover its exposure to Stallion Group and protect the interests of its stakeholders.

Beyond the dispute, the decision underscores the importance of enforceable mortgage securities and the legal authority of duly appointed receivers to protect creditors’ interests.

It also reinforces the principle that disagreements over the precise amount owed do not automatically extinguish an established debt or prevent a creditor from exercising lawful recovery rights.

The judgment provides UBA with a stronger legal basis to pursue the recovery process, including enforcement of the mortgage security and protection of receivables due to the defendants from government agencies.