Go to Content Area :::

Constitutional Court R.O.C. (Taiwan) Logo

Home Sitemap 中文版
   

Decisions

Home > Decisions > Interpretations (before 2022)
:::
:::
  • Interpretation
  • No.300【Under Translation】
  • Date
  • 1992/07/17
  • Issue
    • Is Article 71 of the Bankruptcy Act constitutional in empowering the court to extend the detention of the debtor while saying nothing about the limit on the number of extensions limit?
  • Holding
    •        The Bankruptcy Act provides in Article 71, Paragraph 1, that "where there is probability that the bankrupt may abscond from creditors or conceal, destroy or dispose of his property, the court may issue a writ to have the bankrupt detained." While detention of the bankrupt may be necessary in order to protect the interests of all creditors by preserving the property of the bankruptcy estate, and thereby to ensure that the bankruptcy procedure may be satisfactorily completed, a time limit is prescribed by Paragraph 2 of the same article, which reads: "The period of detention shall not exceed one month, provided that the court may grant extensions thereof for up to one month each time upon good reasons presented by the bankruptcy trustee." We have noticed, however, that the proviso does not specify a reasonable limit on the number of extensions that may be granted. This is contrary to the essence of the Constitution in protecting the physical freedom of the people, and must be amended as promptly as practicable, but by no means later than one year from the date of pronouncement of this Interpretation, on which date said proviso shall cease to be operative. Before the law is amended, the foregoing proviso must be applied in a cautious manner consistent with our views herein expressed. With regard to the situation where a bankrupt is suspected of having committed any of the crimes under Articles 152 through 159 of the Bankruptcy Act, this is a different matter, and we opine that the case shall be sent to the prosecutor for investigation, who may order the bankrupt to be lawfully detained if necessary.
  • Reasoning
    •        The Bankruptcy Act provides in Article 71, Paragraph 1, that "where there is probability that the bankrupt may abscond from creditors or conceal, destroy or dispose of his property, the court may issue a writ to have the bankrupt detained." While detention of the bankrupt may be necessary in order to protect the interests of all creditors by preserving the property of the bankruptcy estate, and thereby to ensure that the bankruptcy procedure may be satisfactorily completed, a time limit is prescribed by Paragraph 2 of the same article, which reads: "The period of detention shall not exceed one month, provided that the court may grant extensions thereof for up to one month each time upon good reasons presented by the bankruptcy trustee."  It must be noted that restraint on the physical freedom of any person, with the exception of those found guilty of crimes and sentenced to life imprisonment by irrevocable judgments, is subject to limited periods of time as prescribed by existing statutes. For instance, while a debtor in a compulsory execution proceeding may be arrested and taken into custody by the court under Article 22 of the Compulsory Enforcement Act on the ground that there is apparently a probability that he will abscond from the creditors or has concealed or disposed of his property which is subject to enforcement, and that he has failed to furnish reasonable security required, such custody may not last over three months and thereafter he may be again taken into custody only once if there is new cause for custody. Moreover, in criminal proceedings, Article 101 of the Criminal Procedures Act authorizes the court to detain the accused whenever necessary if it believes or is made to believe by the occurrence of any event that there is probability that the accused may flee from justice, or destroy, falsify, or alter evidence, or engage in collusion with an accomplice or a witness. However, Article 108 of the Act provides that detention of the accused shall not exceed two months during the process of investigation and three months during trial, that if it is necessary to continue to detain the period thus extended shall not exceed two months each time, that only one extension may be ordered during an investigation, and that if the crime is punishable by a maximum principal penalty of imprisonment for not more than ten years the detention during the trial may be extended up to three times by the court of the first instance and the court of the first appeal, and not more than once by the court of the second appeal. Inasmuch as the primary purpose of detention in a bankruptcy procedure is to preserve the property of the bankruptcy estate, the proviso to Paragraph 2 of Article 71 of the Bankruptcy Act, saying nothing about a limit on the number of times for which detention may be extended, is obviously inappropriate and susceptible to abuse when compared with the other statutes quoted above, and is thus against the intent of the Constitution in protecting the physical freedom of the people. To put it right, said provision must be amended as promptly as practicable upon an overall review to be carried out in respect of such matters as relating to the suitability of the term "detention," restrictions on the number of times or the aggregate number of days for which extensions may be ordered, what reasonable measures of control may be exercised over the bankrupt without having to place him under physical restraint, and what sanctions may be imposed in case of violation of the measures of control. The amendment shall be made within one year from the date of pronouncement of this Interpretation, on which date said provision shall cease to be operative. Before the law is amended, the foregoing proviso must be applied in a cautious manner consistent with our views herein expressed. With regard to the situation where a bankrupt is suspected of having committed any of the crimes under Articles 152 through 159 of the Bankruptcy Act, this is a different matter, and we opine that the case shall be sent to the prosecutor for investigation, who may order the bankrupt to be lawfully detained if necessary.
      
    • *Translated by Raymond T. Chu.
Back Top