Under Section 41 of the Transfer of Property Act, 1882, a transfer by an ostensible owner is binding on the real owner if:

Section 41 of TPA, 1882 embodies the doctrine of "holding out" or "ostensible ownership." Where, with the express or implied consent of the real owner, a person is representing himself to be the owner of the property and a transferee for consideration acts in good faith on this representation after taking reasonable care to ascertain the ostensible owner's power to transfer, the transfer cannot be challenged by the real owner. The essential conditions are: (i) the real owner must have given express or implied consent to the ostensible ownership; (ii) the transferee must have acted in good faith; and (iii) the transferee must have taken reasonable care mere reliance on registration records alone may not always suffice. This doctrine is grounded in estoppel having clothed another with apparent ownership, the real owner is precluded from denying that ownership to the prejudice of an innocent purchaser for value.