Personally, I would pay it. But, I like this style of knife, and though I have not seen this type marking, it seems to be carbon steel, which I prefer, and it seems very close to the Royal Army model, though I can't see enough to comment positively. I just like the knife and would carry it in my pocket!
Certainly worth the asking price.
Looks like an Indian copy of the standard British Army Jack Knife, I have a few of them (photo of one I have below) and they sell for around £15-£20 here.........the asking price for this one is OK but I'm sure you can make an offer.......
Early war issue jack knive, India works is probably the company name not that it was made in India. A good example for a fair price.
Whatever its just an opinion.
To me it looks too well made for an Indian made type...and personally I would hold out for one in better condition as this one has some of the scales missing and a very worn blade.