United Bank for Africa (UBA) Plc says it has secured a beneficial judgment on the Federal High Court in Lagos in its long-running dispute with Stallion Group and the Vaswani brothers over an alleged N156 billion debt.
According to a press release issued by UBA and made out there to Nairametrics, Justice Daniel Osiagor of the Federal High Court, Ikoyi, Lagos, upheld the appointment of Romeo Ese as Receiver/Manager over property linked to the debt restoration proceedings.
The financial institution stated the court docket delivered the judgment on Friday, ruling in its favour on the problems introduced for dedication, together with the enforceability of mortgage securities and the legal responsibility of guarantors.
The dispute includes Stallion Group, whose Group Chairman is Sunil Vaswani, and its Managing Director/Chief Executive Officer, Mahesh Vaswani.
Nairametrics has not independently reviewed a replica of the judgment and has been unable to acquire affirmation or a response from Stallion Group relating to the most recent growth. The particulars of the ruling reported on this article are based mostly on UBA’s assertion.
The growth represents one other chapter within the extended authorized dispute between the financial institution and corporations related to Stallion Group over the alleged excellent debt.
What UBA is saying in regards to the judgment
According to UBA, the court docket upheld the appointment of the Receiver/Manager and affirmed the financial institution’s proper to implement the mortgage safety related to the disputed amenities.
The financial institution said that the court docket granted the reliefs it sought, together with recognition of the Receiver/Manager’s authority to take possession of the mortgaged property and search protecting orders the place essential.
- “In a major affirmation of UBA’s enforcement rights, the Court upheld the appointment of the Receiver/Manager and confirmed his entitlement to take possession of the mortgaged property and seek appropriate protective orders,” the financial institution said.
UBA additionally reported that the court docket thought-about the query of the defendants’ indebtedness and the quantity being claimed.
According to the financial institution’s account of the proceedings, the defendants didn’t dispute the existence of indebtedness however challenged the quantity claimed by UBA.
The financial institution stated the court docket decided that the reconciliation of accounts between the events didn’t invalidate the underlying debt obligations.
UBA additional said that the court docket dismissed objections raised by the twelfth defendant regarding proprietary rights over the mortgaged property.
According to the assertion, the court docket discovered that the defendant had not established ample proprietary rights to require its consent earlier than the mortgage was created.
- “Consequently, its consent was not required for the creation of the mortgage, and its objections were rejected,” UBA said in its account of the ruling.
The financial institution additionally reported that the court docket issued orders restraining the defendants from diverting receivables attributable to them from authorities businesses, as a part of measures to guard UBA’s restoration pursuits.
Additionally, UBA stated the judgment affirmed the legal responsibility of the guarantors underneath the related financing preparations.
These findings, as described by the financial institution, would strengthen UBA’s authorized place in its efforts to recuperate the disputed debt.
However, the complete scope of the court docket’s orders, the particular property affected and any potential grounds for attraction stay topic to affirmation from the judgment itself.
UBA describes ruling as vital for debt restoration
UBA described the judgment as a serious growth in its efforts to recuperate the alleged excellent obligations from Stallion Group and related events.
The financial institution maintained that the ruling bolstered the enforceability of mortgage securities and the authority of duly appointed receivers to recuperate money owed underneath relevant authorized preparations.
- “It also reinforces the principle that disputes over the precise amount of an outstanding debt do not, by themselves, invalidate the underlying indebtedness or prevent creditors from exercising their lawful recovery rights,” the financial institution added.
UBA argued that the choice strengthens its potential to pursue restoration of the excellent obligations and defend the pursuits of the financial institution and its stakeholders.
While UBA has introduced the judgment as a complete victory, Nairametrics has not independently established whether or not the defendants intend to problem the choice or whether or not additional proceedings are contemplated.
Backstory: UBA’s N156 billion debt dispute
The newest growth follows authorized proceedings initiated by UBA in 2023 against Stallion Nigeria Limited and several other related firms over an alleged indebtedness of N156 billion.
At the time, the financial institution sought to implement securities linked to the amenities, resulting in court docket proceedings involving property related to the defendants.
According to an earlier report by TheCable, the court docket had permitted the takeover of disputed property as a part of the debt restoration proceedings.
Stallion Nigeria Limited, nonetheless, disputed the financial institution’s claims on the time.
The firm maintained that Stallion Nigeria Limited was the one entity inside Stallion Group that had entered right into a financing contract with UBA, difficult the broader claims involving related firms.
The disagreement over the debt and the entities liable for compensation subsequently turned a part of the broader authorized dispute.
The newest judgment, as described by UBA, seems to handle a number of of the contested points, significantly the enforceability of the securities and the legal responsibility of guarantors.
Nevertheless, the precise implications for Stallion Group and the Vaswani brothers will depend upon the phrases of the court docket’s judgment and any subsequent authorized proceedings.
What it is best to know
Stallion Group has beforehand confronted debt-related disputes involving Nigerian monetary establishments.
- In December 2019, Nairametrics reported that Stallion Motors’ showrooms on Victoria Island, Lagos, had been sealed following an ex parte court docket order linked to debt restoration proceedings.
- At the time, Stallion Motors’ Chief Executive Officer, Anant Badjatya, dismissed claims that the automobile company’s operations had been shut down over an alleged N330 billion debt owed to Nigerian banks and the Asset Management Corporation of Nigeria (AMCON).
- Badjatya stated the enforcement motion had been taken with out the corporate’s information and maintained that its monetary place remained sound.
- He said that Stallion Motors had property exceeding N750 billion against liabilities of roughly N150 billion, which he described as a wholesome debt place.
The 2019 dispute supplies historic context to the group’s dealings with collectors however shouldn’t be confused with the present UBA proceedings.
This is a growing story…
