New Delhi, March 31 -- A school bus pressed into service for election duty, a fatal road accident, and a legal battle over who should pay compensation - the Supreme Court has now settled the question, placing the burden squarely on the State. In a verdict with wide implications for election administration, the Supreme Court has ruled that governments cannot shift liability onto private insurers when accidents occur during the use of requisitioned vehicles. A bench of Justices Sanjay Karol and N Kotiswar Singh held that once a vehicle is taken over by authorities under statutory powers, the liability to pay compensation under the Motor Vehicles Act rests with the State functionary, not the private owner or its insurer, because control and, therefore, responsibility shift entirely to the State during the period of requisition. "It is held that where a vehicle is requisitioned for public functions and an incident occurs during the period of such requisition, liability ought properly to be borne by the requisitioning authority, and not by the insurer engaged by the owner for the vehicle's regular and voluntary use," declared the judgment released last week. The ruling came in a case arising from a 2010 accident in Madhya Pradesh, where a school bus requisitioned for panchayat election duty collided with a motorcycle, resulting in the rider's death. While the Motor Accident Claims Tribunal had initially fastened liability on the insurer, the Madhya Pradesh High Court shifted it to the district magistrate and election authorities -- a finding now upheld by the Supreme Court. Senior advocate Archana Pathak Dave assisted the court as amicus curiae. Dismissing the state's appeal against the 2024 order, the bench held that requisition fundamentally alters the nature of control over a vehicle. It noted that the owner is "divested of custody and decision-making power" and has no say in how, when, or where the vehicle is deployed during such period. The bench relied on some earlier precedents to underline that liability under the Motor Vehicles Act follows possession and control, not mere ownership. Rejecting the state's argument that such liability would deter authorities from requisitioning vehicles for public purposes, the court underscored that statutory power carries corresponding responsibility. "When the State steps in, assumes control, and deploys the vehicle for its own purposes, it assumes with that control the corresponding responsibility," it noted....