District Magistrate & District Election Officer, Gwalior v. National Insurance Co. Ltd. & Ors.

 When a vehicle is requisitioned by the State for public purposes, liability for accidents during such period shifts from the insurer to the requisitioning authority exercising control.

Background

Accident involving requisitioned vehicle during election duty.
A school-owned bus, requisitioned by election authorities under s. 160 Representation of the People Act, 1950, caused a fatal accident. The Tribunal fastened liability on the insurer, but the High Court shifted liability to the State authority.

Issues Framed

  1. Whether liability for compensation lies with the insurer or the State when a vehicle is under requisition for public purposes.

Court’s Reasoning

1. Effect of Requisition on Control and Ownership

  • The Court held that requisition transfers effective control and possession of the vehicle to the State.
  • Though legal ownership remains with the private owner, functional control shifts entirely, which is determinative for liability.

2. Interpretation of “Owner” under Motor Vehicles Law

  • Relying on Deepa Devi and Purnya Kala Devi, the Court held:
    • “Owner” includes the person in control and possession, not merely the registered owner.
    • When the State requisitions a vehicle, it effectively steps into the role of “owner” for liability purposes.

3. Liability of Insurer

  • The insurer’s contract covers ordinary use by the insured owner, not compelled deployment under State control.
  • Imposing liability on the insurer would extend contractual risk beyond agreed terms.

4. Distinction from Contractual Use Cases

  • Cases like U.P. SRTC v. National Insurance Co. were distinguished:
    • Those involved voluntary contractual arrangements, not statutory requisition.

5. Responsibility of the State

  • Requisition is a statutory compulsion, not voluntary transfer.
  • With control comes responsibility—the State must bear consequences of use.

6. Use of Driver During Requisition

  • Even if the driver remains employed by the owner,
    • the State implicitly accepts and controls his services during requisition.

Decision / Disposition

  • Appeal dismissed.
  • High Court’s decision upheld: liability to pay compensation rests with the requisitioning State authority.

Ratio

Where a vehicle is requisitioned under statutory authority and is under the control of the State at the time of an accident, liability for compensation rests with the requisitioning authority and not the insurer of the registered owner.

Case Details

Citation: 2026 INSC 279
Decided on: 23 March 2026
Case Title: District Magistrate & District Election Officer, Gwalior v. National Insurance Co. Ltd. & Ors.
Court: Supreme Court of India
Bench: Sanjay Karol, Nongmeikapam Kotiswar Singh, JJ.


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