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

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