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District Magistrate and District Election Officer and Collector, Gwalior v. National Insurance Company Limited

Civil Appeal · 2026 INSC 279Decided 23 Mar 2026
C.A. No.-003685-003685 - 2026
Justice Sanjay Karol · Justice Nongmeikapam Kotiswar Singh · Justice Augustine George Masih

Background

A bus owned by a private school in Gwalior was requisitioned by the District Magistrate/Election Officer for Gram Panchayat election duty. While under the control and command of the election authorities, the bus collided with a motorcycle, killing the rider. The Motor Accident Claims Tribunal awarded compensation to the deceased's legal heirs, and on appeal the High Court of Madhya Pradesh shifted liability for the compensation from the insurance company to the requisitioning authority (the District Magistrate/Collector) while also enhancing the compensation amount. The District Magistrate appealed to the Supreme Court, arguing the insurer should remain liable since the vehicle was covered by a valid policy.

Decision Breakdown

The Supreme Court held that once a vehicle is requisitioned by the State for a public purpose, control and possession pass entirely to the requisitioning authority: the owner has no say in its use and derives no benefit, so it is unfair to hold the owner's insurer liable for risks arising from compelled governmental use that falls outside the insurance policy's contemplated "regular use." The Court distinguished this from cases where vehicles operate under a voluntary agreement with an authority (where the insurer remains liable), since requisition under statute is a compelled command, not a consensual arrangement. It further held that because the requisitioning authority chose to take the vehicle along with its driver (rather than requisitioning only the vehicle and separately arranging manpower under the Representation of the People Act, 1950), the authority effectively accepted responsibility for the driver's conduct too. The appeal was dismissed, confirming that liability rests with the requisitioning government authority, not the insurer.

Lesson Learnt

When the government requisitions private property (such as a vehicle) for public duties like elections, it assumes full legal responsibility, including liability for accidents, for the period of that requisition; a private owner's insurance does not automatically cover risks created by the government's own compelled use of the property.

Official source (sci.gov.in)View Judgment (PDF)

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