By Annette Ikponmwonba | October 19, 2026
Key Points
· UBA has won a Federal High Court ruling in its three-year effort to recover money it says Stallion Group owes
· Justice Daniel Osiagor of the Federal High Court, Ikoyi, Lagos, resolved every issue in the bank’s favour and granted all reliefs sought
· The court confirmed Romeo Michael as receiver-manager, with the right to take possession of the mortgaged property and seek protective orders
· The defendants were barred from diverting payments owed to them by government agencies
· The court held that the defendants did not dispute owing money, only the amount, and that reconciliation of accounts did not cancel the debt
· Objections by the 12th defendant, Barbedos Ventures Limited, were dismissed for failing to establish proprietary rights over the mortgaged property
Main Story
United Bank for Africa Plc has won a court ruling in its three-year effort to recover money it says Stallion Group owes. The Federal High Court upheld the bank’s receiver, its mortgage security and the liability of the guarantors. Justice Daniel Osiagor of the Federal High Court, Ikoyi, Lagos, resolved every issue in UBA’s favour and granted all the reliefs sought, according to the judgement heard in court.
The court confirmed Romeo Michael as receiver-manager, with the right to take possession of the mortgaged property and seek protective orders. It also barred the defendants from diverting payments owed to them by government agencies, reinforcing the bank’s ability to protect its recovery interests.
The court held that the defendants did not dispute owing money, only the amount, and that a reconciliation of accounts did not cancel the debt. It also dismissed objections raised by the 12th defendant, Barbedos Ventures Limited, holding that it had failed to establish any proprietary rights over the mortgaged property. Its consent was therefore not required for the creation of the mortgage.
The Issues
The case turns on a basic question in lending: how far a creditor can enforce its security when a borrower contests the figures. The court’s finding that disputing the amount owed is not the same as disputing the debt itself, and that reconciliation does not wipe out liability, sets a clear position that lenders are likely to welcome.
The ruling also confirms the standing of duly appointed receivers and properly constituted mortgages. By rejecting Barbedos Ventures’ objection for lack of proprietary rights, the court signalled that third parties must show a real legal interest in mortgaged property to challenge it.
The order stopping the defendants from diverting government payments is also notable, as it protects a revenue stream the bank can rely on for recovery. The defendants, which include Von Automobile Nigeria, Stallion Motors, The Honda Place and director Sunil Vaswani, may still have avenues to challenge the judgement.
What’s Being Said
The report describes the decision as a victory for UBA, with the court resolving all issues in the bank’s favour. It adds that the ruling is particularly significant for the enforcement of creditors’ rights in Nigeria, underscoring the legal validity of properly constituted security arrangements and the authority of duly appointed receivers, No statement from the defendants or their lawyers was included in the report.
What’s Next
Attention will turn to how quickly the receiver-manager moves to take possession of the mortgaged property and begin recovery. The defendants may also respond, including through a possible appeal, The case began when Justice Akintayo Aluko granted UBA orders to take over assets of Stallion Nigeria Ltd. and its affiliates in Lagos, Port Harcourt and Kano, and to freeze their funds across Nigerian banks. Stallion’s attempts to lift those orders failed in December 2023.
Bottom Line
UBA’s win gives the bank a strong legal footing to recover the N156bn it says it is owed, and the ruling reinforces the weight Nigerian courts give to properly constituted mortgages and receiver appointments in debt recovery disputes.
