Lance Naik Sachidananda Mallick had fought for the country in Kargil War and laid down his life on June 28, 1999, district officials said, quoting records.
An amount of Rs 22.70 lakh had thereafter been awarded to the his family by the army, the Centre, and the state government.
His widow Nivedita Mallick later got a government job and full family pension, the district officials said.
With the martyr's widow receiving the full compensation amount of Rs 22.70 lakh, Malatilata, 75-year-old mother of Mallick in Kandiahata area of the district, had moved the local court for share of the sum, officials had said in early 2000.
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Kendrapara civil judge (senior division) in 2007 had then ordered the soldier's mother, who is also a widow, is entitled to one-third of the compensation amount from the war widow's account under Hindu Succession Act, 1956.
Nivedita and her minor son Soumya Ranjan Mallick were thus legally entitled to two-thirds share, the court had observed.
In the meantime, the Kargil widow's son who was minor during the filing of the litigation has become an adult, widow's counsel Bichitranand Mohanty said.
The Kargil war hero's mother deserves a better deal, said Kendrapara Ex-servicemen Association President, Maheswar Kar.