Delhi HC disposes of Nayara Energy’s petition against Microsoft over suspension of services

 Nayara accused Microsoft of restricting its access to its own data, proprietary tools, and products — despite these being acquired under fully paid-up licences. 
| Photo Credit:
AMIIT DAVE

The Delhi High Court has disposed of the petition filed by Nayara Energy against Microsoft over “abrupt and unilateral suspension” of critical services.

Sources said the petition filed by the private-sector oil marketing company (OMC) has been “disposed of”.

On Monday, the Rosneft-backed firm, which owns and operates India’s second-largest single-site refinery with a capacity of 20 mtpa, dragged the US-headquartered software and data services giant to the Delhi High Court.

Nayara Energy claimed that Microsoft chose to withdraw its services without any legal requirement to do so under US or Indian law. This action has been taken “unilaterally, without prior notice, consultation or recourse”, and under the guise of compliance.

Nayara’s legal action forced Microsoft to restore the services, an intimation to which was made on Wednesday early afternoon.

The data services provider in a statement said: ”Microsoft is committed to supporting all its customers in India and worldwide, and has restored services for Nayara Energy. We are engaged in ongoing discussions with the European Union towards service continuity for the organisation.”

Point of contention

Nayara accused Microsoft of restricting its access to its own data, proprietary tools and products — despite these being acquired under fully paid-up licences. Rosneft holds 49.13 per cent stake in Nayara Energy.

“This decision, based solely on Microsoft’s unilateral interpretation of recent European Union sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy High Court of Delhi seeking an interim injunction and resumption of services to safeguard its rights and ensure continued access to essential digital infrastructure,” Nayara Energy said.

These steps are aimed at preventing any potential disruption to Nayara’s ability to meet its obligations to Indian consumers and stakeholders, it added.

The 18th sanction package by the European Union against Russia, earlier this month, is being considered as one of the most sweeping actions against the erstwhile Soviet Union over its war with Ukraine. The main endeavour behind this action is to check Russia’s key circumvention channels for refined products and crude oil trade aimed at dealing further blows to its oil and gas sector profits.

Published on July 30, 2025