S. R. Singharavelu, J.

The substantial questions of law that arise for consideration is this appeal are as follows :

"i. Whether the reliance of the lower Court on Section 2(12) of the Employees' State Insurance Act as regards the statutory obligation of the employer to seek coverage can be sustained in law?

ii. Whether the interpretation placed by the lower Court on Section 77-b of the said Act can be sustained in law ?;

iii. Whether the finding of the lower Court as regards the assessment of the concerned authority can be sustained in law ?

iv. Whether the finding of the lower Court as regards the notification applicable to the area in question can be sustained in law ?"

2. The Regional Director, E.S.I.Corporation, Madras-34 has preferred this appeal as against the order dated 20.12.1995 passed by the learned Second Additional District Judge (Employees' State Insurance Court), Pondicherry.

3. The respondent herein filed an application under the said Act to set aside the order dated 13.12.1991 of the appellant claiming coverage of the provisions of the said Act from 2.7.1985 to 31.10.1987.

4. Issue No.(ii) : The respondent is an establishment engaged in the production of cau