Civil execution barred after tax recovery notice; prior attachment is not required for the statutory restraint to operate.

Service of notice under rule 2 of the Second Schedule to the Income-tax Act, 1961 creates a statutory disability over the defaulter's property, and rule 16(1) bars a civil court from issuing execution process against that property even before any attachment under rule 3. The distinction between rule 16(1) and rule 16(2) shows that the bar in sub-rule (1) is triggered by notice itself, while sub-rule (2) addresses the effect of an existing attachment. The scheme preserves property for tax recovery and prevents conflict between private execution and revenue recovery proceedings.

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Issues: Whether, after service of notice under rule 2 of the Second Schedule to the Income-tax Act, 1961, a civil court is barred by rule 16(1) from issuing process in execution against the defaulter's property even before any actual attachment under rule 3.

Analysis: Rule 16(1) first disables the defaulter from dealing with any property belonging to him after service of notice under rule 2 and then bars a civil court from issuing any process against such property in execution of a money decree. Rule 16(2) separately deals with the consequences of an attachment already made. The different phraseology used in the two sub-rules shows that the bar in sub-rule (1) is tied to the disability created by the notice itself and is not dependent on prior attachment. The scheme of rules 2, 3, 4 and 16 preserves the property for tax recovery and avoids conflict between private execution and the revenue recovery process.

Conclusion: Actual attachment under rule 3 is not necessary for the bar under rule 16(1) to operate, and a civil court cannot issue process against such property once notice under rule 2 has been served.

Ratio Decidendi: Service of notice under rule 2 of the Second Schedule to the Income-tax Act, 1961, by itself creates a statutory disability on the defaulter's property that bars civil execution against that property until the revenue recovery process is completed or cancelled.

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