Were there prisons during the time of the Messenger of Allah, peace and blessings be upon him, and the Rightly Guided Caliphs, or were the prescribed punishments (Hudud) applied to them? And is an indebted person unable to pay, and a thief after his hand has been cut off, imprisoned?

Punishment in Islam is carried out through known hudud (prescribed penalties) and ta'zir (discretionary punishments), which include imprisonment. Imprisonment is a legitimate means of disciplining the disobedient. During the time of the Prophet, peace be upon him, captives were tied up in the mosque. During the Rightly Guided Caliphate, Umar, may Allah be pleased with him, established a special house for imprisonment.

Whoever is subject to a specific hadd punishment has it applied immediately and is then released. As for the insolvent debtor who has no money, there is no imprisonment for him. He is given time until he can repay, according to the verse: "And if there is one in [financial] hardship, then [give him] time until a time of ease. But if you remit [it by way of charity], it is better for you, if you only knew." (Al-Baqarah: 280). However, if his situation is unclear, the judge may imprison him until his matter becomes clear.