Bishan Dayal v Kesho Prasad
Rule established
Reasonable care under S.41 requires inquiry into title records; reliance on possession alone is insufficient
Facts
- Purchaser bought property relying only on the seller's possession
- Did not check registration records or title documents
- True owner challenged the sale
Issue
- What constitutes "reasonable care" under S.41 for a bona fide purchaser.
Held
- A purchaser who relies solely on possession without checking title documents (registration, revenue records) does not meet the reasonable care standard. Inquiry into title records is expected from a prudent buyer.
Ratio Decidendi
S.41 requires both good faith AND reasonable care. Good faith (honest belief) alone is insufficient if the buyer failed to make inquiries that a prudent person would have made. The standard is objective: what would an ordinary prudent buyer do?
How to use it in an exam
Cite when discussing the "reasonable care" element of S.41. Key line: "Inquiry into title records is expected from a prudent buyer."
Source
Source: AIR 1940 Allahabad 483
This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.
Cited in study notes
Transfer by Ostensible OwnerS.41: reasonable care requirement