Justice Osiagor affirmed the liability of the guarantors and confirmed the authority of Romeo Ese as the appointed receiver/manager. This grants him the power to take possession of mortgaged properties and seek protective orders to safeguard these assets. The court found that the defendants did not dispute owing the bank, but rather challenged the specific amount claimed.
A significant aspect of the ruling prohibits the defendants from diverting any payments they are due to receive from government agencies. This measure is intended to prevent the siphoning of funds that could otherwise be used by the bank in its recovery efforts.
The court also dismissed an objection raised by Barbedos, one of the defendants, which argued that its consent was necessary for the mortgage transactions. Justice Osiagor stated that Barbedos failed to demonstrate any proprietary interest in the mortgaged property, thus lacking the legal standing to demand its consent.
The dispute originated in October 2023 when UBA obtained interim court orders to enforce securities over assets belonging to Stallion Nigeria Limited and its subsidiaries. These assets include industrial and commercial properties located in Lagos, Port Harcourt, and Kano. Stallion Group had previously disputed the debt amount in November 2023, claiming substantial repayments and ongoing discussions with UBA for account reconciliation.