Kellas-Sharpe v PSAL Limited

The Court of Appeal rejected the suggestion that loan agreements which provided for the payment of interest at a standard interest rate together with a reduced concessional rate for timely payment contained, for that reason, a penalty.  The Court held that even if the validity of such a clause constructed in that way was anomalous or gave preference to form over substance, its validity was too well entrenched for it to be disturbed by an intermediate Court of Appeal.