Facts: A school bus owned by Kidzee Corner School was requisitioned by the District Magistrate and District Election Officer, Gwalior, for Gram Panchayat election duties. On January 23, 2010, while under the command of the election authorities, the bus collided with a motorcycle, resulting in the death of the rider. The Motor Accident Claims Tribunal (MACT) originally awarded compensation and fastened liability on the National Insurance Company, with whom the bus was insured. However, on appeal, the High Court of Madhya Pradesh shifted the entire liability to meet the compensation award from the Insurance Company to the requisitioning authority (the Appellant).Procedural Posture: The District Magistrate challenged the High Court's judgment via a Special Leave Petition before the Supreme Court, contending that the Insurance Company should remain liable as the vehicle was covered by a valid policy at the time of the accident.Issue: Whether the State (requisitioning authority) or the Insurance Company is liable to pay compensation for an accident involving a vehicle that has been compulsorily requisitioned for public duty under statutory powers.Holding: The Supreme Court held that the requisitioning authority (the State) is liable to meet the award, and the Insurance Company cannot be held responsible for accidents occurring during the period of requisition.Reasoning: The Court reasoned that a statutory requisition is a "compelled deployment" that divests the owner of all control, custody, and decision-making power over the vehicle. Since the State assumes total control and determines the manner of deployment for governmental functions, it also assumes the corresponding legal responsibility for any untoward incidents. The Court distinguished this from "voluntary" agreements or "regular use" envisioned in a private insurance contract. Fastening liability on a private insurer for risks generated exclusively by governmental action, which were neither authorized nor controlled by the insured, would be unfair and would extend the insurance contract beyond the risk it agreed to cover. Furthermore, by accepting the vehicle along with the driver, the State implicitly recognized the driver's competence, further consolidating its liability as the temporary "owner" in control of the vehicle.