Courts (Emergency Powers) Act, 1939. 4. At the outset of the war it had been decided that it was desirable to avoid anything in the nature of a general moratorium for debts under pre-war contracts. Instead, the Courts (Emergency Powers) Act, 1939, was passed in September to give a measure of protection to debtors in respect of such debts. Briefly that protection took the form of preventing a creditor, without the leave of the Court, from realising any security or taking possession of property; and the Courts could refuse such leave, or grant it subject to conditions, in cases where debtors could show that they were unable to meet their liabilities by reason of circumstances directly or indirectly attributable to the war.