Is this a controversial blitz ruling?

Player A (white) has 1 minute
Player B (black) has 30 seconds

The tournament time control is 5 3
The 3 second is not an increment but a delay before your time ticks.
The tournament is advertised as a lightning tournament.

White plays Ke3 from Kf4 which places the Black King on f6 in Check from a Rook on f2
Black plays Rc1 x c3 and there is a White Bd3 stopping check.
Black presses the clock.
White stops clock
White claims illegal move. (Note White could have played Kd2 to win the Rook and said check if no claim is made)
Arbiter rules "No Penalty, Rook is placed back on C1 and Black is not forced to play touch move.
Arbiter rules "Tournament not played under lightning rules because of time control.)"
Play continues.