In a relief for landowners of Varanasi, the Allahabad High Court has increased compensation for Smt. Kusuma alias Kusma, whose land was acquired over two decades ago for an industrial park by the Uttar Pradesh State Industrial Development Corporation Limited (UPSIDCL). The judgment, delivered by Justice Sandeep Jain on October 10, 2025, directed that she be paid compensation at the higher rate of ₹5,115 per decimal, matching the rate granted in similar earlier cases.
Background
The case stems from the acquisition of land in Village Karkhiyaon, Pargana Kolsala, Tehsil Pindra, District Varanasi, under a notification issued on May 21, 1998, for the establishment of an industrial park. Kusuma’s 0.99-acre plot was part of that acquisition.
Initially, in 2013, the Additional District Judge, Varanasi, had awarded her ₹3,838 per decimal along with statutory benefits under the Land Acquisition Act, 1894. Dissatisfied, she filed an appeal under Section 54 of the same Act, challenging the compensation as inadequate compared to what other similarly placed landowners had received.
Her counsel, Shreesh Srivastava, argued that several landowners whose properties were acquired through the same notification had already been awarded higher compensation following the High Court's judgment in U.P. State Industrial Development Corporation Ltd. v. Nazir & Ors., decided on April 16, 2018.
Court's Observations
Justice Sandeep Jain took note of the parity principle, pointing out that "the land in question is similarly situated and acquired under the same notification" as the lands covered by the earlier appeals. The bench observed,
"In view of the settled position and finality attained by the 2018 judgment, the appellant is entitled to compensation at the same rate."
The Court also recorded that the State’s counsel, Abhinav Trivedi, did not dispute this position. The earlier judgment in Nazir & Ors. had been challenged before the Supreme Court through Special Leave Petition (SLP) No. 31193 of 2018 (U.P. State Industrial Development Corporation Ltd. v. Harish Chandra & Anr.), but the Apex Court dismissed the appeal on August 4, 2021, thus affirming the High Court’s ruling.
Justice Jain remarked that, since the Supreme Court had declined to interfere, the issue had reached finality.
"The same yardstick must be applied to maintain fairness among all affected landowners," he stated during the hearing.
Decision
Allowing the appeal, the High Court enhanced the compensation for Kusuma’s land from ₹3,838 to ₹5,115 per decimal. The Court also granted her:
- 30% solatium (a statutory addition recognizing the emotional and social loss due to compulsory acquisition),
- 12% annual additional compensation, and
- Interest under Section 28 of the Land Acquisition Act, 1894.
However, the Court denied interest for the period between May 16, 2013, when the appeal was first filed, and August 29, 2025, when Kusuma cleared the deficiency in her court fee.
"The appellant shall not be entitled to interest on the enhanced amount for this period," the order specified, underlining procedural accountability.
Finally, the Court directed the office to prepare a decree accordingly, with each party bearing its own costs.
Case Title: Smt. Kusuma Alias Kusma v. Sri Salim and 5 Others
Case Number: First Appeal From Order (FAFO) No. 812 of 2025
Date of Judgment: 10 October 2025
Counsel for Appellant: Shreesh Srivastava
Counsel for Respondents (State): Abhinav Trivedi, Adarsh Kumar
