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 an announcement 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 belongings linked to the debt restoration proceedings.
The financial institution mentioned the courtroom delivered the judgment on Friday, ruling in its favour on the problems offered for dedication, together with the enforceability of mortgage securities and the legal responsibility of guarantors.
The dispute entails Stallion Group, whose Group Chairman is Sunil Vaswani, and its Managing Director/Chief Executive Officer, Mahesh Vaswani.
Nairametrics has not independently reviewed a duplicate of the judgment and has been unable to acquire affirmation or a response from Stallion Group concerning the newest growth. The particulars of the ruling reported on this article are primarily based on UBA’s assertion.
The growth represents one other chapter within the extended authorized dispute between the financial institution and firms related to Stallion Group over the alleged excellent debt.
What UBA is saying concerning the judgment
According to UBA, the courtroom 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 acknowledged that the courtroom 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 needed.
- “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 acknowledged.
UBA additionally reported that the courtroom 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 mentioned the courtroom decided that the reconciliation of accounts between the events didn’t invalidate the underlying debt obligations.
UBA additional acknowledged that the courtroom dismissed objections raised by the twelfth defendant regarding proprietary rights over the mortgaged property.
According to the assertion, the courtroom discovered that the defendant had not established enough 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 acknowledged in its account of the ruling.
The financial institution additionally reported that the courtroom issued orders restraining the defendants from diverting receivables attributable to them from authorities companies, as a part of measures to guard UBA’s restoration pursuits.
Additionally, UBA mentioned the judgment affirmed the legal responsibility of the guarantors beneath the related financing preparations.
These findings, as described by the financial institution, would strengthen UBA’s authorized place in its efforts to get well the disputed debt.
However, the complete scope of the courtroom’s orders, the precise belongings affected and any potential grounds for enchantment stay topic to affirmation from the judgment itself.
UBA describes ruling as vital for debt restoration
UBA described the judgment as a significant growth in its efforts to get well 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 get well money owed beneath 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 skill to pursue restoration of the excellent obligations and defend the pursuits of the financial institution and its stakeholders.
While UBA has offered 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 a number of other related corporations over an alleged indebtedness of N156 billion.
At the time, the financial institution sought to implement securities linked to the amenities, resulting in courtroom proceedings involving belongings related to the defendants.
According to an earlier report by TheCable, the courtroom had authorized the takeover of disputed belongings as a part of the debt restoration proceedings.
Stallion Nigeria Limited, nevertheless, 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 corporations.
The disagreement over the debt and the entities accountable for reimbursement subsequently grew to become a part of the broader authorized dispute.
The newest judgment, as described by UBA, seems to deal with a number of of the contested points, notably the enforceability of the securities and the legal responsibility of guarantors.
Nevertheless, the precise implications for Stallion Group and the Vaswani brothers will rely upon the phrases of the courtroom’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 courtroom 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 mentioned the enforcement motion had been taken with out the corporate’s data and maintained that its monetary place remained sound.
- He acknowledged that Stallion Motors had belongings 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…
