41. An acceptor of a bill of exchange already indorsed is not relieved from liability by reason that such indorsement is forged, if he knew or had reason to believe the indorsement to be forged when he accepted the bill.
Negotiable Instruments Act, 1881
Section 41: Acceptor bound, although, indorsement forged
Chapter III — Parties to Notes, Bills and Cheques
Source: official text of the Negotiable Instruments Act, 1881.