Chennai, Dec. 1 -- The Madras High Court has set aside an arbitral award after finding that the sole arbitrator failed to follow fundamental evidentiary principles, resulting in what the Court termed 'perverse' and 'patently illegal' findings.

Justice N Anand Venkatesh held that while arbitral tribunals are not strictly bound by the Evidence Act, they must still adhere to its core principles to avoid violating the fundamental policy of Indian law.

The Court said that ignoring these principles could invite judicial scrutiny and render an award unsustainable.

The ruling came in a dispute over a 2018 registered sale agreement for a 2,400 sq ft plot in Chennai. Buyer H Sunil Kumar had paid Rs 50 lakh to sellers M Deepak Kumar Samdariya and...