XN000022-1983-12-02 — Page 2

FRIDAY, DECEMBER 2, 1983

LAW REFORM ON CIVIL DEBTORS PROPOSED

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THE LAW GOVERNING THE IMPRISONMENT OF CIVIL DEBTORS IS TO BE REFORMED SO THAT IN FUTURE A PERSON FROM WHOM MONEY IS CLAIMED WILL ONLY BE IMPRISONED AFTER HE HAS BEEN BROUGHT BEFORE A COURT AND ONLY BY ORDER OF THE JUDGE.

THE JUDGE WILL ONLY HAVE POWER TO ORDER IMPRISONMENT IF THE DEBTOR IS ABLE TO PAY BUT HAS AVOIDED MEETING ANY PART OF HIS DEBT, OR HAS OBSTRUCTED THE COURT.

THESE LAW REFORM MEASURES ARE PROPOSED UNDER A DEBTORS (ARREST AND IMPRISONMENT) BILL 1983 PUBLISHED IN THE GAZETTE TODAY.

A GOVERNMENT SPOKESMAN EXPLAINED THAT THE EXISTING LEGISLATION RELATING TO IMPRISONMENT FOR CIVIL DEBT IS CONTAINED IN TWO SEPARATE ORDERS OF THE RULES OF THE SUPREME COURT.

UNDER ONE OF THESE ORDERS, A PERSON TRYING TO LEAVE THE TERRITORY WITH HIS ASSETS TO AVOID A LAW SUIT CAN BE IMPRISONED BY ORDER OF A JUDGE. THIS IS INFREQUENTLY USED.

THE OTHER ORDER GIVES AUTHORITY, AFTER JUDGEMENT HAS BEEN GIVEN, FOR IMPRISONMENT OF THE DEBTOR FOR UP TO A YEAR AS A MEANS OF ENFORCING PAYMENT OF THE JUDGEMENT DEBT.

THIS IS FREQUENTLY USED IN HONG KONG AND WHETHER OR NOT THERE HAS TO BE AN ORDER OF A JUDGE BEFORE THE IMPRISONMENT TAKES PLACE IS CURRENTLY BEING ARGUED BEFORE THE COURTS.

IN RESPECT OF THE PRESENT POSITION A GOVERNMENT SPOKESMAN SAID, THERE HAS BEEN CRITICISM OF THE EXISTING LEGISLATION IN THE LEGISLATIVE COUNCIL. IN PARTICULAR, THE HON PETER C. WONG WHILE ACKNOWLEDGING THAT IT IS NECESSARY TO DEVISE AN EFFECTIVE MACHINERY FOR RECOVERING MONEY FROM A DEBTOR WHO HAD EITHER ASSETS OR A REGULAR INCOME, HAS ARGUED THAT POVERTY IS NOT A CRIME AND THAT IMPRISONMENT AS A FORM OF PUNISHMENT SHOULD HAVE NO PLACE IN THE ENFORCEMENT PROCEDURES OF THE CIVIL LAW.+

THE REVISED LEGISLATION NOW PROPOSED HAS TWO KEY FEATURES 1-

(A) THERE WILL BE AN EXPRESS REQUIREMENT FOR PERSONS

AGAINST WHOM JUDGEMENT HAS BEEN ENTERED TO BE BROUGHT BEFORE A HIGH COURT OR DISTRICT COURT JUDGE OR THE REGISTRAR OF THE SUPREME COURT FOR EXAMINATION BEFORE AN ORDER OF IMPRISONMENT CAN BE MADE.

(B) THERE WILL BE A SET PROCESS BY WHICH THE DEBTOR

APPEARS BEFORE THE COURT. IN ALL CASES THE JUDGEMENT CREDITOR WILL BE REQUIRED TO SUBMIT AN APPLICATION AND IT WILL BE A MATTER FOR THE COURT WHETHER AN ORDER SHOULD BE SERVED ON THE JUDGEMENT DEBTOR REQUIRING HIM TO APPEAR FOR AN EXAMINATION INTO HIS FINANCIAL POSITION WITHOUT ARREST, OR WHETHER AN ORDER SHOULD BE ISSUED FOR HIS ARREST.

WHEN THE