Buttrose J:

This was an action for money lent.

In view of the argument addressed to us on the hearing of the appeal, I propose to deal firstly with the pleadings. The case as presented by the pleadings was this. The plaintiff in his statement of claim alleged that the sum of $15,000 in all was lent in varying amounts to the defendants between 9 March and 22 July 1961, and that $5,060 had been repaid by instalments between 10 May and 28 August 1961, leaving a balance due to him of $9,940 which he claimed.

The defence was a somewhat curious and confused document. The defendants first of all denied being indebted to the plaintiff either in the sum claimed or at all. They further alleged that on 1 March 1961 the plaintiff and the defendants entered into a written agreement, which was produced at the trial, whereby the plaintiff agreed to finance the defendants in their business from time to time with friendly loans free of interest. The defendants alleged that after the execution of this agreement the plaintiff failed to perform his obligations thereunder and they threatened him with civil proceedings for damages for breach thereof. As a result, according to the defendants,