When the case came up for hearing before the Bench comprising Justice C Shivappa and Justice K Natarajan, the special government pleader presented before the Bench yesterday's government order banning the prize schemes under the lotteries regulation act.

Justice Shivappa, however, pointed out that the schemes had to be banned only under Section 3 of the Prize Chits and Money Circulation Schemes (banning) Act, 1975, which prohibited any scheme collecting cash with the promise of huge prizes. The Lotteries Regulation Act could not be invoked to ban the schemes, he ruled.

When the government pleader sought time to consult the state government on modifying the order, the Bench granted him time till tomorrow.

Earlier, thepetitioner, advocate K M Vijayan, convenor of `Voice' (consumer care council), filed a fresh petition impleading the state home secretary and the publishers of the dailies and magazines bringing out Diwali special issues as respondents.

He also sought a stay on newspaper and television advertisements promoting the schemes.

Meanwhile, Chief Minister M Karunanidhi, talking to newsmen, said the government was awaiting the high court verdict before deciding on a similar ban on the prize schemes announced by private television channels in the state.