Before he died, 22-year-old Liam Cahill pleaded with Rian Farrell not to kick him out of a party because "you're my best friend".
The pair were arguing about an earlier incident when Farrell, now 23, grabbed a knife and plunged it into his friend's chest in a Melbourne CBD apartment.
His lawyer Sam Norton argued Farrell's actions were in self-defence, alleging the 22-year-old victim reached for a bottle first.
He tried to have the murder charge reduced to manslaughter, but Melbourne magistrate Dominic Lennon on Tuesday ruled that it was possible a jury could convict him of the more serious offence.
Mr Lennon said Mr Cahill and another man had fought earlier in the evening, and that Mr Cahill had continued to be aggressive before his death.
He said Farrell tried to get him to leave the La Trobe Street, Docklands apartment but Mr Cahill didn't want to go.
"You're my best friend, why do I have to leave," he said Mr Cahill had asked.
Farrell appeared in court by videolink, and looked visibly upset after hearing Mr Cahill's parents were also watching proceedings.
Witnesses said Mr Cahill threw the first punch at Farrell, and that Mr Cahill punched Farrell more during their fight, the court heard.
Mr Lennon said while no witnesses had seen Mr Cahill reach for a bottle "let alone use it", Farrell had been seen picking up the knife.
"He has deliberately grabbed a knife out of the knife block and used it," he said.
Mr Norton said he conceded "a knife has been used and a man is dead" but said Farrell had not intended to kill Mr Cahill, or to cause him really serious injury.
When interviewed by police afterwards Farrell indicated at least six times that he hadn't meant to kill his friend, Mr Norton said.
"He's saying repeatedly 'I can't believe it, I can't believe he's dead'," Mr Norton said.
He said Farrell, who had consumed up to 12 cans of Jim Beam and cocaine that night, had only stabbed Mr Cahill once.
"He says he freaked out as son as he did it," Mr Norton said.
The court heard a witness saw blood spatter on a wall and Mr Cahill walked out of the apartment. He collapsed in the hallway.
Farrell followed him out the door and tried to shake him awake, the witness said.
Prosecutor John Dickie disputed that the swiftness of the incident meant it could not have been murder.
"A murder can happen very quickly - one gunshot, or one stab through the heart as happened here," he said.
Mr Cahill had a 20cm stab wound in the centre of his chest, which penetrated his heart.
It was clearly an issue for the jury whether Farrell had intended to kill, or cause really serious injury, to Mr Cahill, he said.
A trial is expected to last up to three weeks. The case will move to the Supreme Court next month.
Australian Associated Press
