41: Acceptor bound although indorsement forged — Negotiable Instruments Act, 1881

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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.

Effective date: 1881-12-09

Related sections

40: Discharge of indorser’s liability 42: Acceptance of bill drawn in fictitious name 39: Suretyship 43: Negotiable instrument made, etc., without consideration 38A: Liability of accommodation party and position of accommodation party 44: Partial absence or failure of money consideration

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