Sec. 41 is based on the. rule that no one can confer a higher right on property than what he himself possesses (Neino c/at qud non babel).

Sec. .41 is based on the principle of equity and natural justice. 

Sec. 41 is based on the principle that where one of two innocent persons must suffer from the fraud of a third party, the loss should fall on him who has created, or could have prevented, the opportunity for the fraud.