The Federal High Court in Lagos has upheld United Bank for Africa (UBA) Plc’s appointment of a receiver/manager to recover an alleged N156.03 billion debt owed by Stallion Group and its associated companies.

In a judgment delivered on Friday, Justice Daniel Osiagor affirmed the bank’s right to enforce mortgage securities and take possession of properties pledged as collateral for the loans.

The court held that the defendants did not dispute their indebtedness to UBA but challenged the amount being claimed by the bank.

It ruled that the reconciliation of accounts between the parties did not extinguish the underlying debt or invalidate the bank’s right to enforce its securities.

The judge also upheld the appointment of Romeo Ese as receiver/manager, authorising him to take possession of the mortgaged properties and seek court orders to protect the assets.

In another key ruling, the court restrained the defendants from diverting payments due to them from government agencies, a move aimed at preventing the alleged debtors from frustrating the bank’s recovery efforts.

The court also dismissed an objection by Barbedos, the 12th defendant in the suit, which argued that its consent was required before the mortgage arrangements could be created.

Justice Osiagor held that Barbedos failed to establish any proprietary interest in the mortgaged property and therefore had no legal basis to insist that its consent was necessary.

The court equally resolved the jurisdictional challenge in UBA’s favour and granted the reliefs sought by the bank.

The dispute dates back to October 2023, when UBA initiated legal proceedings against Stallion Nigeria Limited and several affiliated companies over an alleged debt of approximately N156.03 billion.

The bank subsequently obtained interim court orders to enforce its security over assets belonging to Stallion Nigeria Limited and its subsidiaries, including industrial and commercial properties in Lagos, Port Harcourt and Kano.

However, in November 2023, Stallion Group disputed the bank’s account of the debt controversy, maintaining that it had made substantial repayments and was engaged in discussions with UBA over account reconciliation and restructuring.

The litigation later witnessed procedural disputes, including an application by counsel representing some of the defendants seeking the transfer of the case from the court of Justice Akintayo Aluko, who had handled earlier applications.

The latest judgment strengthens UBA’s legal position in its efforts to recover the outstanding debt from Stallion Group, its associated companies and guarantors.