Esteemed Sir,
With foremost esteem, it is stated.........
'Foremost Respect' and 'Esteemed Sir' ?
Can these words coexist? Is esteemed used as an adjective too?
Yes, and "esteemed" is an adjective in this case.
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I believe that these terms are used a lot in Indian-subcontinent English, but they seem very excessive and ornate to western English speakers. You would probably think our form of English is sometimes quite rude.