Wale Igbintade
The Federal High Court in Lagos has upheld the appointment of a receiver/supervisor by United Bank for Africa (UBA) Plc to get well an alleged N156.03 billion debt owed by Stallion Group, whereas restraining the defendants from diverting funds on account of them from authorities companies.
In a judgment delivered on Friday, Justice Daniel Osiagor upheld the validity of the mortgage preparations securing the loans and affirmed UBA’s proper to implement its securities over the properties pledged towards the amenities.
The decide held that the defendants didn’t dispute their indebtedness to the financial institution however challenged the quantity claimed.
The court docket additionally affirmed the legal responsibility of the guarantors and upheld the appointment of Romeo Ese as receiver/supervisor, confirming his authority to take possession of the mortgaged properties and search protecting orders to safeguard the property.
In one other vital side of the judgment, Justice Osiagor restrained the defendants from diverting receivables on account of them from authorities companies, a measure aimed toward stopping the diversion of funds that might facilitate the financial institution’s restoration efforts.
The court docket additional held that the reconciliation of accounts between UBA and the defendants didn’t extinguish the underlying debt or invalidate the financial institution’s proper to implement its safety.
Justice Osiagor additionally dismissed an objection by Barbedos, the twelfth defendant, which challenged the mortgage preparations on the bottom that its consent was required earlier than the transactions might be concluded.
The decide held that Barbedos had failed to ascertain any proprietary curiosity within the mortgaged property and, due to this fact, had no authorized foundation to insist that its consent ought to have been obtained earlier than the mortgage was created.
The court docket additionally resolved the jurisdictional difficulty in UBA’s favour, affirming its competence to entertain the financial institution’s claims.
According to the proceedings, all the problems submitted for willpower had been resolved in UBA’s favour, with the court docket granting the reliefs sought by the financial institution.
The dispute dates again to October 2023, when UBA obtained interim orders from the Federal High Court to implement its securities over property belonging to Stallion Nigeria Limited and its subsidiaries.
The properties affected by the sooner orders included industrial and business property in Lagos, Port Harcourt and Kano.
UBA had alleged that Stallion Group owed roughly N156.03 billion, prompting litigation involving a number of corporations inside the conglomerate and their guarantors.
In November 2023, Stallion Group disputed the financial institution’s account of the debt controversy, sustaining that it had made substantial repayments and was engaged in discussions with UBA over account reconciliation and restructuring.
The proceedings subsequently witnessed procedural disputes, together with a request by counsel representing some of the defendants for the case to be transferred from the court docket of Justice Akintayo Aluko, who had dealt with earlier functions.
