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2026 Supreme(Online)(SC) 1601

Sanjay Karol, Nongmeikapam Kotiswar Singh, JJ
District Magistrate And District Election Officer And Collector, Gwalior – Appellant
Versus
National Insurance Company Limited – Respondent
CIVIL APPEAL NO. OF 2026 | SPECIAL LEAVE PETITION (CIVIL) NO.22910 OF 2025



Advocates:
For the Appellants/Petitioners:
For the Respondents: Archana Pathak Dave

When a private vehicle is compulsorily requisitioned by state authorities for public purposes, the state assumes absolute control over the vehicle, thereby shifting the legal liability for any accidents occurring during the requisition period from the vehicle's insurer to the requisitioning state authority.

Headnote:The case concerns the determination of liability for compensation in a motor vehicle accident involving a vehicle that had been compulsorily requisitioned by state authorities for election duty. The court analyzed whether such liability lies with the insurance company or the requisitioning state authority. The primary issues were: (i) whether the requisitioning authority is liable for damages occurring during the period of requisition, and (ii) whether the existence of an insurance policy relieves the state from liability in such instances. The court reasoned that when a vehicle is requisitioned, the owner is divested of control, possession, and decision-making power, placing the vehicle entirely at the disposal of the state. Therefore, the registered owner and their insurer cannot be held liable for risks generated exclusively by the state's command. The appeal was dismissed, and the judgment of the High Court, which shifted the liability to the requisitioning authority, was upheld.

Table of Content
1. factual background regarding vehicle requisition for election duty and the resulting liability dispute. (Para 2)

SANJAY KAROL J.

Leave Granted.

2. This appeal presents a question of determination of liability N D A at V e E : 2 E 0 N 2 6 D .03.23 in connection with the accident that took place on 23rd January 2010 Reason:

between a bus, Offending vehicle bearing registration number MP-07-MG-9897 and a motorcycle bearing number MP-07-TC-0514, killing the rider of the latter. The bus, although under the ownership of Kidzee Corner School, Gwalior, had been, undisputedly, requisitioned under the orders of the appellant for the purposes of Gram Panchayat Elections. It had, while being under the orders and command of the relevant election authorities, dashed into the motor-cycle of the deceased. The Fifth Additional Motor Accident Claims Tribunal, Gwalior, Tribunal allowed the claim, Claim No. 25/2010 that had been filed by the legal representatives of the deceased, namely Rajesh Mandil and awarded compensation to the tune of Rs 5,13,500 along with 6% interest from the date of filing of the petition. The award also provided for a distribution of the amount so awarded as per the discussion in issue No. 6. Aggrieved by such determination, two Miscellaneous Appeals came to be filed before the High Court of Madhya Pradesh - one by the Insurance Company (respondent no.1 herein) being MA No.703 of 2012 and one by the legal representatives of the deceased - respondent nos. 2 to 5, before this Court who instead took objection to the conservative estimation of the deceased’s income and as such, prayed for the enhancement of the compensation so awarded. In

terms of the impugned judgment dated 8th January 2024, both the miscellaneous appeals were allowed. The Insurance Company’s appeal was allowed insofar as liability originally fastened upon them was instead shifted to the appellant herein. The Appeal by Respondent Nos. 2-5 was allowed by enhancing the compensation to Rs. 27,01,556/-.

3. The appellant by way of this appeal takes exception to the shifting of liability upon him. It is urged that the High Court’s determination was erroneous since at the relevant point in time the offending vehicle was under the coverage of an insurance policy, and so liability to be fastened otherwise would be wrong. Further, it is submitted that when the bus was being used for a public purpose and in course thereof, if the liability is fastened upon public authorities it would send a wrong message since the authorities do not have either ownership of the vehicle or any insurable interest therein.

4. The short question to be determined by us is whether the High Court’s finding that the appellant, a functionary of the State would be liable to meet the award and not the Respondent - Insurance Company, was in accordance with law or not. We have heard the learned counsel for the parties, Ms. Archana Pathak Dave, learned senior counsel, appointed as amicus curiae and also perused the written submissions filed by them.

5. As already noted above, it is undisputed that the bus in question was requisitioned by the appellant for the Gram Panchayat elections. The word requisition is defined by the Cambridge Dictionary, https://dictionary.cambridge.org/dictionary/english/requisition as follows: “to officially request or take something” Merriam Webster, https://www.merriam-webster.com/dictionary/requisition defines it as “ the act of formally requiring or calling upon someone to perform an action; a formal demand made by one nation upon another for the surrender or extradition of a fugitive from justice; the act of requiring something to be furnished; a demand or application made usually with authority: such as - a demand made by military authorities upon civilians for supplies or other needs; a written request for something authorized but not made available automatically; the state of being in demand or use”.

6. The judgment of this Court in National Insurance Co.

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