W.P.No.27417 of 2005 IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated :25.09.2025 CORAM THE HONOURABLE Mr. JUSTICE M.DHANDAPANI W.P.No.27417 of 2005 and WMP.No.29836 of 2005 M/s.Life Excel Educational Foundation Private Limited Represented by its Managing Director Mr.K.Natesan 39/2542 C, Govind, M.G.Road Ernakulam Kerala – 682 016. ... Petitioner Vs 1.The Union of India Represented by its Secretary to Government Ministry of Finance New Delhi. 2.The Chief Secretary to the Government of Tamil Nadu Secretariat, Fort St.George, Chennai – 600 009. 3.The Director General of Police Kamarajar Salai, Mylapore Chennai – 600 004. 4.The Commissioner of Police 1/6 https://www.mhc.tn.gov.in/judis W.P.No.27417 of 2005 Hosur Treasury Road Coimbatore – 641 001. 5.The Commissioner of Police Vincent Building Cherry Road Salem – 636 007. ... Respondents Prayer: Writ Petition filed under Article 226 of the Constitution of India praying to issue a Writ of Declaration declaring that the activities of the petitioner in marketing its consumer goods and selling the same through its distributors by using the network/referral/multi-level marketing system or other conventional means, such as, shops and supermarkets, is legal and not in contravention of the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, and consequently forbear the respondents from in any manner by themselves or their subordinates or agents or men from in any manner interfering with the lawful business activities of the petitioner by either freezing of its accounts or interfering in the conduct of the seminars and promotional meetings held for the distributors and prospective distributors. For Petitioner : Mr.S.Rajasekar For Respondents : Mr.V.J.Arul Raj, Senior Standing Counsel for R1 Mr.A.M.Ayyadurai Government Advocate for R2 Mr.S.Balaji Government Advocate [Crl.Side] for R3 to R5 ORDER 2/6 https://www.mhc.tn.gov.in/judis W.P.No.27417 of 2005 The petitioner-company who is involved in the business of promotion of educational schemes, computer education, professional education, internet based education and training etc., intends to sells its goods to the distributors by using the network multi-level marketing system. The petitioner has approached this Court seeking a writ of declaration, to declare that their activities is legal and not in contravention of the provisions of Prize Chits and Money Circulation Schemes (banning) Act, 1978. 2. In reply, the learned counsel appearing for the respondents would submit that in terms of the provisions of the Act, the business run by the petitioner is not an authorised one, and therefore, prays for the dismissal of the writ petition. 3. Heard the learned counsel for the petitioner and the learned counsel appearing for the respondents. 4. Though the petitioner claims its business to be a legal one, however, such an anticipatory mandamus, sought by the petitioner in the present writ petition, cannot be entertained. However, if any action is taken as against the 3/6 https://www.mhc.tn.gov.in/judis W.P.No.27417 of 2005 petitioner by the respondents, then the remedy available to the petitioner is to challenge the subsequent action. Therefore, the relief prayed for in the writ petition, is an impermissible one, and accordingly, the writ petition is dismissed. On the other hand, if the business run by the petitioner is found to be illegal as alleged by the respondents, the respondents are entitled to take action against the petitioner and liberty is granted to the petitioner, to challenge the same before the appropriate forum in the manner known to law. No costs. Consequently, connected miscellaneous petition is closed. 25.09.2025 Index : Yes / No Speaking order : Yes / No Neutral Citation : Yes / No ds 4/6 https://www.mhc.tn.gov.in/judis W.P.No.27417 of 2005 To: 1.The Secretary to Government Union of India Ministry of Finance New Delhi. 2.The Chief Secretary to the Government of Tamil Nadu Secretariat, Fort St.George, Chennai – 600 009. 3.The Director General of Police Kamarajar Salai, Mylapore Chennai – 600 004. 4.The Commissioner of Police Hosur Treasury Road Coimbatore – 641 001. 5.The Commissioner of Police Vincent Building Cherry Road Salem – 636 007. 5/6 https://www.mhc.tn.gov.in/judis W.P.No.27417 of 2005 M.DHANDAPANI,J., ds W.P.No.27417 of 2005 25.09.2025 6/6 https://www.mhc.tn.gov.in/judis