JUDGMENT

Wan Yahya J:

In this case the plaintiff's claim against the defendant is for the sum of $34,790 and interest in respect of what he calls a 'friendly loan'. In the particulars set out in his statement of claim he itemised nine transactions on varying dates on which he claimed various sums of money were loaned to the defendant. In the course of his evidence in chief, however, he conceded that two of the items - one for $600 and the other for $690 - were in fact payments towards interest.

The system of these loan transactions, as related by the plaintiff himself, is as follows. Whenever a loan is requested for and granted, the defendant or his fiancee would make out a cheque for the amount loaned plus a sum representing one month's interest at 3% per mensem as evidence of loan and probably for what it is worth, a collateral. These cheques were either drawn on the account of a transport company of which the defendant was a co-proprietor, or on the personal account of his fiancee.

The defendant denied that any part of the loans or interests were outstanding. He averred that he had paid interest regularly until some time in 1969 and that the interests claimed were excessive, h