Abstract

Finance has been the life blood of business even before the landmark case of Salomon v Salomon Ltd (1897). Thus, various legislation provide for security of properties, foreclosure, power of sale of creditors assets, liquidation/winding-up and appointment of receiver managers in case of default in loan payment. As a relief, foreclosure is usually pursued by mortgagors acquiring the mortgaged property free from the mortgagors’ equity of redemption. However, obligors/debtors of Banks still continue to devise strategies to either prolong recovery actions by way of technical defences or other practices to frustrate recoveries. To forestall the devices, this article forcefully postulates that scarce resources need to be circulated for better socio-economic egalitarianism. Concomitantly, the urgency of enhanced sustainable development requires courts and ADR systems and parties alike to be astute in the recovery of debts rather than hinging on technicalities.