What it does
The Imprisonment of Fraudulent Debtors Act 1958 (Vic) consolidates the law that once allowed a judgment creditor to have a debtor imprisoned for non‑payment of a civil debt. The Act abolishes the old common‑law writ of capias ad satisfaciendum for the Supreme Court (section 3) and prohibits imprisonment for debt simpliciter in the County Court (section 14) and the Magistrates’ Court (section 22). Instead, it preserves a limited power of imprisonment only where the debtor is proved to have acted fraudulently or to be about to abscond with the intention of evading payment. The Act creates a three‑tier regime depending on which court entered the original judgment. Part I (sections 3‑13) applies to judgments of the Supreme Court; Part II (sections 14‑21) to judgments of the County Court; Part III (sections 22‑28A) to orders of the Magistrates’ Court. Part IV (section 29) contains a general provision about service of the judgment.
In each tier, the judgment creditor may apply for a summons requiring the debtor to attend court and be examined on oath or affirmation about the debtor’s estate, property, means of paying the debt, disposal of property, and intention to leave Victoria or to depart elsewhere within Victoria with intent to evade payment (sections 4, 15, 22). The examination covers also the mode in which the liability was incurred, so that fraud or breach of trust may be exposed. If the debtor fails to appear without sufficient excuse, refuses to be sworn or to answer, or does not answer to the court’s satisfaction, the court may proceed to consider whether a ground for commitment exists. Alternatively, the court may be satisfied by oral testimony or affidavit that the debtor is about to leave Victoria without paying, is about to depart elsewhere within Victoria with intent to evade payment, or - if the debtor is the defendant who incurred the liability - obtained credit by fraud or breach of trust, or has made a gift, delivery, transfer, charge, removal or concealment of property with intent to defraud creditors (sections 5(2),(3); 16(2),(3); 22(1),(2)). Upon proof of one of these grounds, the court may order that unless the debtor pays the unsatisfied money (with interest and costs) within a stated time or by instalments, the debtor shall be committed to prison. The maximum term of imprisonment is six months for the Supreme Court (section 5(3)), four months for the County Court (section 16(3)), and two months for the Magistrates’ Court (section 22). Imprisonment under the Act does not satisfy or discharge the debt; a fresh writ or warrant against the debtor’s property may still be issued (sections 13, 21(2), 28). The Act provides for appeals: from the Supreme Court to the Court of Appeal with leave (section 9); from the Magistrates’ Court to the County Court (section 28A). Ex parte orders may be made in special circumstances (sections 8, 19, 24). The examination is deemed a judicial proceeding, so false answers attract perjury penalties (sections 12, 21(1), 27(1)).