United Bank for Africa Plc has announced a favourable judgment in its N156 billion debt recovery proceedings against the Vaswani brothers and Stallion Group, with the Federal High Court in Ikoyi, Lagos, upholding the appointment of a Receiver/Manager and affirming the liability of guarantors.
According to a statement from the bank, Justice Daniel Osiagor delivered the judgment on Friday, granting all the reliefs sought by UBA and affirming the enforceability of the mortgage security underpinning the recovery action.
The bank said the court upheld the Receiver/Manager’s authority to take possession of the mortgaged property and seek protective orders to safeguard the assets.
The court also restrained the defendants from diverting receivables due to them from government agencies, a measure intended to protect the bank’s recovery interests.
UBA said the defendants had challenged the amount claimed rather than the existence of their indebtedness. According to the statement, the court held that the reconciliation of accounts between the parties did not extinguish or negate the underlying debt.
The judgment also affirmed the guarantors’ liability, supporting the bank’s efforts to recover the outstanding obligations.
On objections raised by the 12th defendant, UBA said the court found that the party had failed to establish proprietary rights over the mortgaged property. Consequently, its consent was not required for the creation of the mortgage, and its objections were dismissed.
The bank described the outcome as a comprehensive victory, saying all issues submitted for determination were resolved in its favour.
UBA said the ruling reinforced its rights under the security arrangements and confirmed the authority of the appointed Receiver/Manager to pursue enforcement.
It also characterised the decision as significant for creditors’ rights, particularly where borrowers dispute the precise amount outstanding without denying the existence of the debt.
The bank described the judgment as a major step in recovering its exposure to Stallion Group and protecting the interests of its stakeholders.