No, he is definitely not madman, he has his reasons. Although he loves the man, certain things have to be done.
This man has a really huge eye, making the other man really disturbed; so much in fact that it haunts his dreams. He simply can't take his mind off of the horrific image.
He goes to the mans house every-night, checking to see if his eye is open by focusing a small beam of light from a lantern onto the sleeping man's face. He does for 7 nights, checking to make sure he can sleep soundly. However, on the eighth night, the man's eye is open.
He decides to take the most reasonable decision and murders the man during the night. He throws him off of his bed and suffocates him under a bed mattress. He then dismembers the body and hides the separated parts under the floorboards of his house, never to be seen again.
The next morning, the police come because a neighbor had reported screaming during the night, he acts like the man simply was away from the house, while he became so daring to sit on a chair right about where the dead man's body lay. The police searched the house and found nothing, however his ears started hearing the dead man's heartbeat.
He became frantic as the beating of the heart steadily grew. Soon it was loud and he could bear it no longer. He gave himself up to the police, hoping the beating would stop.