AJIT K. SENGUPTA, J. - (1.) On or about 14th July, 1980 the State Bank of India instituted a suit being Suit No. 601 of 1980 against the respondents, inter alia, for a decree for Rs. 3,89,646.80 which included interest up to 30th June, 1980 calculated at the agreed rate of 16.15%. On or about 5th Sept., 1983 the Advocate on record of the respondents wrote to the Advocate on record of the plaintiff-bank, inter alia, as follows :- "At the time of meeting held between your Mr. J. Sanyal and our Mr. S. Ray it was categorically made clear that our client the defendant abovenamed is ready and willing to settle the claims of your client without going into the actual account provided the plaintiff bank is ready to accept total claim of the suit together with interest calculated at the rate of 6% per annum from the date of filing of the suit until payment in full. However at the request of your Mr. Sanyal our Mr. S. Ray intimated him that the said rate of interest may be raised to 10% per annum from 6% per annum. Hence if your client is rigid in so far as the payment of interest is concerned at the rate of 16.15% then our client shall have no other alternative but to contest the suit and which would only delay in recovery of your clients' dues herein. It may be pointed out that there are very serious and major discripancies in the claim of your client in the above suit and if the suit is not settled out client would strongly rely on such discripancies of accounts at the hearing. Therefore, we do hope that for expeditious recovery of public money the plaintiff bank would reconsider its views relating to the rate of interest." "We are informed by your client above named the defendant herein that if the suit is settled and a total figure of claim of your client with interest and costs is arrived at then our client would pay the same in one installment simultaneously with the filing of the terms of the settlement before this Hon'ble Court."
(2.) The Bank, however, did not agree to the said proposal.
(3.) On 16th April, 1984 the respondents submitted to a decree. The judgement and decree dated 26th April, 1984 are to the following effect :- "Inasmuch as on behalf of the defendants it was submitted that the whole claim of the plaintiff, namely Rs. 3,62,060.48 P. and interest thereon from the 1st of January 1980 up to 30th June, 1980 amounting to Rs. 27,586.32 P. totaling a sum of Rs. 3,89,646.80 P. is agreed to be paid by the defendants and a fortnight's time is asked for paying off the sum and a request also made that the interim interest should be reduced and that the plaintiff should not be entitled to more than 6% per annum from the 1st of July 1980 until payment, this Court considers the same to be a reasonable offer and grants the defendants' prayer. Mr. Suresh Majumdar appearing on behalf of the plaintiff had made over to the Court a letter of 5th Sept., 1983 wherein it appears that at that time the defendants were agreeable to pay the principal amount due to the plaintiff and interest thereon at the rate of 10% per annum. Mr. Majumder, relying on this letter, submits that interest should be paid at least at the rate of 10% per annum. Mr. Majumder contends that in fact a higher rate of interest of 16.15% should be allowed as claimed by the plaintiff and if the Court should accede to the request of the defendants, the Court should not allow interest to be less than 10% which was offered by their letter of the said date. Having heard the respective contention of the parties, this Court is of the view that the letter of the defendants of 5th Sept., 1983 cannot be relied upon at this stage the plaintiff did not accept the same at the time it was issued. Moreover, in view of the fact that the defendants have submitted to a decree for Rs. 3,62,060.48 P. plus interest thereon for the period from 1st Jan., 1980 to 30th June, 1980 at the rate of 16. 15% which amounts to a sum of Rs. 27,586.32 P. and offers to pay the same within a fortnight from date, no higher rate of interest is required to be paid by the defendants for the period after June 30, 1980. In this view of the matter there will be a decree in favour of the plaintiff for a sum of Rs. 3,89,646.80 P. with interim interest at the rate of 6% per annum thereon from 1st July, 1980 till 11th May, 1984, on which date the said sum will be paid. In default of payment of the entire decorate dues with interim interest as above, the plaintiff will be entitled to execute the decree forthwith with interest on judgement at the rate of 18% per annum and cost which is assessed at Rs. 20,000/- This decree is against defendant 1. The suit as against the guarantor will stand adjourned till 14th May, 1984. Upon payment of the entire decorate dues including interim interest thereon and the cost assessed, the Deed of Hypothecation, referred to in the plaint, as well as the Deed of Guarantee will stand cancelled. Liberty to apply. All parties to act on a signed copy of the minutes of this order on the usual undertaking.";