Suffian LP:

At the outset I would like to say that Wan Suleiman FJ concurs with both Judgements about to be delivered.

On 10 July 1969, the defendant Kalima d/o Valangam signed the following document (Exh. P1) saying that she had received $2,000 as an interest-free friendly loan from the plaintiff R Ganesan s/o Ramasamy: "Subject:- Loan of $2,000

I, Kalima d/o Valangam, IC No. 3930155 of No. 205 Pekan Attap, Sg Patani, Kedah, has received the sum of dollars Two 'thousand only ($2,000) as a friendly loan free from interest from R Ganesan s/o Ramasamy IC No. 1916860 of No. 54 Jalan Kuala Ketil, Sungei Patani, Kedah, and has agreed to repay the full amount within one year dated this day Thursday the 10 day, of July, 1969.

Name:- Kalima d/o Valangam

I.C. No. 3930156 (borrower) RTP.

I, Abdul Kadir s/o Matharganee IC No. 0106940 of No. 20 Jalan Dewa, Sungei Patani, Kedah, have witnessed the payment of the above friendly loan free from interest unto the borrower.

Name:- Abdul Kadir s/o Matharganee

IC No. 0106940 (witness) Signature.

The defendant did not pay, so the plaintiff alleges, and on 17 August 1971, the plaintiff's solicitor wrote to her a letter (Exh. P2) as follows:

Dear Mdm.,

Re: Loan of $2,000

We act for Mr. R Ganesan of No. 54 Jalan Kuala Ketil, Sungei Patani, Kedah, who has instructed us to write as follows:-

Our client states that at your request our client lent you an interest free friendly loan of $2,000 to be repaid within one year.

Our client further states that it is now almost two years and despite repeated demands you have failed and or neglected to pay the said sum or any part thereof.

We have been instructed to give you NOTICE, which we hereby do that unless you pay the said sum of $2,000 to us or to our client within seven days from date hereof, we have instructions to commence legal action against you to recover the said sum and have you condemned in costs.

Yours faithfully"

On 23 August 1971, the defendant's solicitor replied by letter (Exh. D3) as follows:

Dear Sir,

Re: Loan of $2,000

We have been handed over your AR Registered letter of 17 August 1971 by Mdm Kalima d/o Valangam of No. 205 Pekan Atap, Sg Patani, Kedah with instructions to reply thereto as follows:-

Our client instructs us that the loan in question was not free of any interest and also we are further informed by our client that the amount of loan was not $2,000 but $1,500 and a further sum of $500 was added as interest making a total of $2,000.

The said amount was to be paid at $50 a month and to be paid within 40 months.

So far our client has paid a sum of $1,200 leaving a balance of $800 which legally is not enforceable against our client as your client was not a licensed moneylender under the Moneylender's Ordinance.

However without prejudice to our client's protection under the Moneylender's Ordinance our client will try to settle the balance sum.

It will be noted that the defendant alleged that -

(1) the sum borrowed was only $1,500,

(2) on which she was to pay $500 interest,

(3) she has paid $1,200, leaving a balance of $800, and

(4) the plaintiff could not recover the balance as he was an unlicensed moneylender.

The defendant did not pay at all (according to the plaintiff), so on 20 October 1971, the plaintiff brought Civil Action No. 170 of 1971 in the Magistrate's Court at Sungei Patani claiming against the defendant as follows (I quote from paras. 3 to 6 of the statement of claim):

3. On the 10 day of July 1969, at the request of the defendant and in consideration of the defendant and in consideration of the defendant's promise to pay, the plaintiff lent the defendant $2,000 interest-free friendly loan.

4. The defendant had promised to repay the said loan within one year.

5. Although the defendant has repeatedly promised to repay the said loan the defendant has failed and or neglected to do so despite repeated demands, the last by AR Registered letter dated the 17 August, 1971.

6. Wherefor