s 54 Liability of acceptor
54. The acceptor of a bill, by accepting it —(a) engages that he will pay it according to the tenor of his acceptance; (b) is precluded from denying to a holder in due course —(i) the existence of the drawer, the genuineness of his signature, and his capacity and authority to draw the bill; (ii) in the case of a bill payable to drawer’s order, the then capacity of the drawer to indorse, but not the genuineness or validity of his indorsement; (iii) in the case of a bill payable to the order of a third person, the existence of the payee and his then capacity to indorse, but not the genuineness or validity of his indorsement.