Section 41 of TPA : Section 41: Transfer By Ostensible Owner

Explanation using Example

Imagine Rita, who has been living in and taking care of her elderly aunt's house for the past 10 years while her aunt lives with her son abroad. The neighbors and friends all believe Rita owns the house because her aunt has never returned, and Rita manages all the affairs of the house. With her aunt's implied consent, Rita becomes the ostensible owner of the property.

Rita decides to sell the house and informs her aunt. Her aunt, though hesitant, does not object. John, interested in buying the house, meets Rita. He sees her bills, tax receipts, and maintenance records, all suggesting she is the owner. After a brief inquiry in the neighborhood and no evidence to the contrary, John buys the house from Rita, believing she has the authority to sell it.

Later, Rita's aunt claims that Rita had no right to sell the property. However, under Section 41 of The Transfer of Property Act, 1882, since Rita was the ostensible owner and John acted in good faith and took reasonable care to verify Rita's authority, the sale is valid and cannot be challenged by Rita's aunt.