Mokhtar Sidin JCA:

[1] We have dismissed this appeal earlier and now we give our reasons for doing so. The appellant was the defendant in the court below while the respondent was the plaintiff. I will refer to the parties as they were in the court below.

[2] The plaintiff's statement of claim, inter alia , stated:

3. Pada 24.1.2000, di atas permintaan Defendan, Plaintif telah bersetuju untuk memberikan pinjaman persahabatan kepada Defendan untuk jumlah wang sebanyak RM1,026,812.02 ("Pinjaman Persahabatan").

(On 24.1.2000, upon the Defendant's request, the Plaintiff agreed to grant a friendly loan to the Defendant in the sum of RM1,026,812.02 ("Friendly Loan")).

4. Di atas dasar persahabatan yang terjalin di antara Plaintif dan Defendan dan di atas niat untuk menolong Defendan, Plaintif telah memberikan Pinjaman Persahabatan kepada Defendan melalui cek-cek iaitu Bumiputra-Commerce Bank No. 095338 bertarikh 24.1.2000 untuk jumlah sebanyak RM343,186.86 dan Bumiputra-Commerce No. 095339 bertarikh 24.1.2000 untuk jumlah sebanyak RM683,625.16.

(Based on the friendship between the Plaintiff and the Defendant and with the intention of helping the Defendant, the Plaintiff granted the Frie