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"47-A. Instruments of conveyance etc., if undervalued, how to be dealt with:- (1)(a) If the market value of any property which is the subject of any instrument on which duty is chargeable on the market value of the property as set forth in such instrument is less than even the minimum value determined in accordance with any rules made under the Act, the registering officer appointed under Indian Registration Act, 1908, shall, notwithstanding anything contained in the said Act, immediately after presentation of such instruments and before accepting it for registration and taking any action under section 52 of the said Act, require the person liable to pay the deficit stamp duty as computed on the basis of the minimum value determined in accordance with the said rules and return the instrument for presenting again in accordance with section 23 of the Registration Act, 1908.

(3) The Collector may suo moto,or on a reference from any court or from the Commissioner of Stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any Officer authorized by the Board of Revenue in that regard, within four years from the date of registration of any instrument on which duty is chargeable on the market value of the property, not already referred to him under sub section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject of such instrument and the duty payable thereon, and if after such examination he has reason to believe that the market value of such property has not been truly set forth in the instrument, he may determine the market value of such property and the duty payable thereon.

(5) The instrument produced before the Collector under sub section (2) or sub section (3) shall be deemed to have come before him in performance of his function.

(6) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty on the copy of instrument in accordance with the procedure laid down in sub section (2) and (4)."

The import of section 31 of the Act contemplates that the power has been given to the Collector to determine the market value of the property on the date it is executed and whether the duty has been paid on the instrument or not. If he finds that the duty chargeable on the instrument has not been paid, he shall proceed to impound the document under section 33 of the Act. In such, situation, he shall refer the matter to the Collector for the purpose of determination of the market value of the property set forth in the said instrument. If he finds that the market value set forth is less than the minimum value in accordance with law/rules made thereunder the Act he will direct the person to pay stamp duty under section 29 of the Act.

In the present case, there is nothing to suggest that the petitioners had not truly set forth the market value of the property which is subject of conveyance. Petitioners are bona fide purchaser of the property, relying upon the market value which was determined by the landlord and the petitioners. It is also not disputed that one of the principles for determining the market value is what a willing buyer would be willing to pay to the seller.

The petitioners are the bona fide purchasers and had correctly determined the market value of the property as existed in the year 1966 which was determined by the landlord and the petitioners. It is also not in dispute that one of the principles of the market value is that willing buyer will be willing to pay to the seller.