The Federal High Court in Lagos has dominated in favour of United Bank for Africa (UBA) in a N156 billion debt recovery suit against Stallion Group and its subsidiaries and upheld the appointment of the receiver/manager, Romeo Ese, by the financial institution as legitimate.
In a judgment delivered by Justice Daniel Osiagor on Friday, the courtroom granted all of the reliefs sought by the financial institution and affirmed its jurisdiction to listen to the case.
It additionally affirmed the appropriate of the receiver/manager to take possession of the mortgaged property, with the receiver/manager declared to be entitled to hunt protecting orders,
It additionally affirmed the appropriate of the receiver/manager to take possession of the mortgaged property, the enforceability of the mortgage safety and the legal responsibility of the guarantors.
The courtroom additionally declared that the receiver/manager is entitled to hunt protecting orders and famous that the defendants didn’t dispute their indebtedness, despite the fact that they challenged the quantity claimed.
According to the courtroom, the reconciliation of accounts between the events didn’t negate the underlying indebtedness.
In his ruling, Justice Osiagor dismissed the objections raised by Barbedos Ventures Limited, the twelfth Defendant, holding that it failed to ascertain any proprietary rights over the mortgaged property.
On that rating, its consent was not required for the creation of the mortgage, and its objections have been declined.
The courtroom forbade the defendants from diverting the receivables resulting from them from authorities companies, reinforcing the financial institution’s potential to guard its recovery pursuits.
The ruling affirmed the legal responsibility of the guarantors, boosting the authorized place of UBA to hunt recovery of the excellent obligations.
The ruling is essential for imposing collectors’ rights in Nigeria, underscoring the validity of correctly constituted safety preparations and the authority of duly appointed receivers to implement collectors’ pursuits.
Background
According to UBA, the financial institution granted a number of credit score services to Stallion Nigeria Limited in 2014 on the settlement that the credit score services could possibly be utilised by different corporations inside the Stallion Group in accordance with the phrases of the supply letter.
The financial institution stated the defendants pledged belongings in Kano, Port Harcourt and Lagos as safety for the loans.
According to an affidavit deposed to by Anthony Chilaka, the group head, Recovery and Remedial Management Department of UBA, on 18 October 2023, Sunil Vaswani, the chairman of Stallion Group, made a private assure in respect of the services.
Stallion Motors was awarded a contract by the Federal Government in 2014 to provide 700 Ashok Leyland vehicles/Stallion troop carrying automobiles and 50 Falcon seater buses for use by the army on the settlement that the receivables from the federal government could be paid into Stallion’s account with UBA, the financial institution claimed.
On delivering the automobiles, Stallion Motors allegedly requested the federal government to make the primary fee of $50 million into its Dubai account and obtained N8.2 billion into its offshore account as a substitute of the UBA account, opposite to the sooner understanding between the events.
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UBA stated the defendants did not settle its money owed totalling N156 billion.
Acting on an order of the Federal High Court, Lagos, in November 2023, UBA took over Stallion Group’s belongings and people of its subsidiaries in Lagos, Kano, and Port Harcourt as half of the debt recovery push.
The belongings comprised mortgaged property often called “all that piece or parcel of land together with any building thereon” at Plot 371, Trans Amadi Industrial Layout, Port Harcourt, Rivers State.
“Plot 353, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, Plot 370, Trans Amadi Industrial Layout, Port Harcourt, Rivers State, KM17, Lagos-Badagry Expressway, Lagos State and No. 54, Challawa Industrial Estate, Kano State, Nigeria.”
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