United Bank for Africa (UBA) Plc has secured a favourable ruling in its N156.03 billion debt recovery case against Stallion Group and associated companies, following a decision by the Federal High Court in Lagos. Justice Daniel Osiagor, who presided over the case in Ikoyi, granted the bank’s requests and upheld the appointment of Romeo Ese as receiver-manager over assets linked to the dispute. The court also affirmed the enforceability of the mortgage securities and the liability of guarantors involved in the credit arrangements. 
The case stems from credit facilities UBA said it granted Stallion Nigeria Limited in 2014, with the understanding that the funds could be used by other companies within the group in line with the agreed terms. According to the bank, assets in Lagos, Port Harcourt and Kano were pledged as security for the facilities. UBA initiated the debt recovery suit in October 2023, alleging that the outstanding debt amounted to N156.03 billion. The dispute also involves Stallion Group chairman Sunil Vaswani and several associated companies, including Stallion Motors, Von Automobile Nigeria and The Honda Place.
In its ruling, the court held that the defendants disputed the amount claimed by the bank but did not contest the existence of the indebtedness, according to reports of the judgment. It also ruled that reconciling the accounts between the parties did not cancel the underlying debt. The judge upheld the receiver-manager’s appointment and confirmed his authority to take possession of the mortgaged properties and seek protective orders. The court further dismissed an objection by Barbedos Ventures Limited, the 12th defendant, finding that it had not established proprietary rights over the disputed property and that its consent was not required for the mortgage.
The court also restrained the defendants from diverting payments owed to them by government agencies, a measure intended to protect UBA’s recovery efforts. The ruling strengthens the bank’s legal position in pursuing the disputed obligations and enforcing the securities provided for the credit facilities. UBA had previously obtained court orders relating to assets connected to Stallion Group and its subsidiaries in Lagos, Port Harcourt and Kano. The bank’s case includes claims concerning the repayment of facilities and the enforcement of guarantees linked to the transactions.
However, Stallion Group has challenged the judgment, stating that it disagrees with the decision and believes there are grounds for an appeal. The group said it had filed a notice of appeal at the Court of Appeal and sought a stay of execution pending the determination of the appeal. It also maintained that its operations were not affected by the judgment and urged stakeholders to rely on verified information. The dispute is therefore continuing through the legal process, with the final outcome subject to any further decisions by the appellate courts.
