Under the Negotiable Instruments Act, 1881, an acceptor of a bill of exchange already indorsed is not…

Section 41 says an acceptor of a bill already indorsed is not relieved by the forgery of that indorsement "if he knew or had reason to believe the indorsement to be forged when he accepted the bill". What counts is his knowledge at the time of acceptance, not the holder's good faith or who the forger was.