judgment

Markandey Katju, J. —

1.This appeal by special leave has been filed against the impugned judgment of the Andhra Pradesh High Court dated 8.5.2001 in Writ Petition No.12649 of 2000.

2.Heard learned counsel for the parties and perused the record.

3.The writ petition was filed in the High Court praying for a declaration that Section 47A of the Indian Stamp Act as amended by A.P. Act 8 of 1998 which requires a party to deposit 50% deficit stamp duty as a condition precedent for a reference to the Collector under Section 47A is unconstitutional. By the impugned judgment the High Court has declared it unconstitutional. Hence, this appeal.

4.Under Section 3 of the Indian Stamp Act, 1899 certain instruments are chargeable with the duty mentioned in the Schedule to the Act. Item 23 in the Schedule to the Act mentions a ‘conveyance’ as one of the documents requiring payment of stamp duty. A ‘conveyance’ is defined in Section 2(10) of the Act and includes a sale deed. Since in the present case we are concerned with payment of stamp duty on a sale deed, we have referred to the above provisions.

5.Experience showed that there was large scale under valuation of the real value of the propert