Section 41 of the Transfer of Property Act deals with transfers of property by an ostensible owner. It states that such a transfer will not be voidable if the transferee acted in good faith and took reasonable care to ensure the transferor had the power to transfer. However, this is now subject to the Benami Transactions Act of 1988, which considers property held under a benami transaction to be owned by the person providing the consideration. The Benami Act does not apply retroactively to cases already in progress when it was enacted. For benami transactions after the Act, section 41 of the Transfer of Property Act cannot be used as a defense.

1. SECTION 41 IN THE TRANSFER OF
PROPERTY ACT, 1882
PRESENTED BY-
AKIB KHAN
ROLLNO:- 45

2. SECTION 41
 Transfer by ostensible owner —
Where, with the consent, express or implied, of the
persons interested in immoveable property, a
person is the ostensible owner of such property and
transfers the same for consideration, the transfer
shall not be voidable on the ground that the
transferor was not authorized to make it.
 Provided that the transferee, after taking
reasonable care to ascertain that the transferor had
power to make the transfer, has acted in good faith.

3. TRANSFER BY OSTENSIBLE OWNER
 Statutory change –
The law relating to transfer by an ostensible owner
as given in section 41 of the Act is now subject to
the provisions of the Benami transactions Act,
1988.
The “Benami Transaction” means any transaction
in which property by another person for a
consideration paid or provided by another person.
The Act provides that where a property is
transferred Benami the person, in whose name the
property is held, shall become real owner.

4. NATURE AND SCOPE OF THE ACT
 The Benami Transition Act, 1988 is not of
retrospective operation. It cannot be made
applicable to suits or proceedings which already
started before commencement of the Act and, in
such cases Benami cannot be treated a real owner.
 In respect of Benami transaction entered into after
commencement of this act, no person is now
allowed to take plea under section 41 of the transfer
of property act.

5. ESSENTIAL CONDITIONS FOR APPLICATION OF
SECTION 41-
 There is transfer of an immovable property by
ostensible owner with express or implied consent of
the real owner ,
 The transfer is for consideration ,
 The transferee has acted in good-faith, and,
 The transferee has exercised reasonable care in
finding out the transferor’s power to make the
transfer .

6. THANK YOU …