A HIGH Court judge has reversed a decision he made earlier this year in a case involving a multimillion-dollar fortune left by one of Singapore's pioneer tycoons.

The tussle was over how the inheritance of Miss Lim Chhui Ngor, the great-granddaughter of tycoon Lim Yew Teok, should be distributed.

Miss Lim died in 2006. She was the only bloodline descendant of the tycoon, who died in 1925 leaving one daughter and five adopted sons.

In January, Justice Choo Han Teck decided that the half-sisters of Miss Lim's father - Madam Chng Heng Choo and Madam Chng Heng Tee - could get a part of her inheritance.

However, seven months after his initial decision, Justice Choo changed his mind, ruling that Miss Lim's inheritance would 'fall into residue' instead. That means that her share of the tycoon's estate is to be divided up among the remaining beneficiaries of his will.

Mr Lim's estate reportedly includes more than $100 million worth of OCBC shares and a $2 million Neil Road house.

The tycoon's will stated that he wanted his assets distributed only 21 years after the death of his last surviving child.

His assets are held in trust with British and Malayan Trustees. Income earned from the trust was to be distributed in 95 portions to his beneficiaries.

Miss Lim was a major beneficiary of the will. With the deaths of her ancestors, she ended up with 40 portions, receiving about $700,000 a year of the income earned by the trust funds.

The mentally unsound, unmarried and childless woman died in June 2006 without any known next of kin.

After her death, the administrators of her estate tried to track down her surviving kin. The only lead they had was a photograph of Miss Lim as a child, with her mother and two maternal aunts.

The photo was published in the newspapers, appealing for those related to her to come forward. Eventually, one of her two maternal aunts, Madam Koh Tek Heng, responded to the advertisement. Separately, the Chng sisters also staked their claim.

Last year, British and Malayan Trustees, represented by Allen & Gledhill, went to the High Court seeking direction for Miss Lim's 40 shares to be distributed among the remaining beneficiaries.

The beneficiaries agreed with this but the Chng sisters disputed it, saying they should be entitled to a share. But the trustees felt that, if at all, the 15 portions in dispute should go to Madam Koh.

In January, Justice Choo ruled that the 15 portions would go to the Chngs because there was no better claim.

Madam Koh, who did not make arguments in the first round, then staked her claim, arguing that she has a stronger case, being Miss Lim's full-blood relative. Madam Koh's lawyers then applied to set aside Justice Choo's judgment.

A month later, the judge did so and allowed parties to argue again before him.

More people also came forward to stake their claim to the inheritance, including Madam Koh's half-brother and Miss Lim's cousins.

After hearing arguments, Justice Choo decided that none of these new people had a valid claim to the money.

He was persuaded by lawyers for the trustees that the shares have to fall into residue - go into wider pool - when there are no more descendants.

It was immaterial that there might have been a surviving next of kin, such as Madam Koh, Justice Choo said in his new judgment released on Wednesday.

selinal@sph.com.sg