8 hrs ago
Delhi High Court Orders SAP to Restore Nayara Support
Nayara Energy runs a large oil refinery in India.
SAP provides software and support that the refinery uses for important work.
SAP stopped several services after the European Union sanctioned Rosneft, which owns 49.13% of Nayara.
Nayara said the services were needed to operate the refinery and meet government requirements.
It also said the shutdown could create security and operational problems.
The Delhi High Court ordered SAP India to restore the services for now.
The court said the contracts are governed by Indian law.
SAP argued that its Germany-headquartered group had to follow the European sanctions.
The court refused SAP’s request to delay the order for several weeks.
The Delhi High Court granted Nayara Energy interim relief against SAP India.
SAP India must restore suspended software and enterprise support services.
The court said the contracts are governed by Indian law.
Nayara said the suspension threatened refinery operations, compliance and GST 2.0 updates.
SAP cited EU sanctions on Rosneft and requested a delay in implementing the judgment.
- Who
- Nayara Energy, SAP India and the Delhi High Court are central to the dispute; Justice Vikas Mahajan led the bench.
- What
- The court granted interim relief and directed SAP India to restore suspended software and enterprise support services.
- Where
- The case was heard by the Delhi High Court in New Delhi.
- When
- The order was issued on Monday; SAP suspended services in July 2025 and Nayara approached the court in September 2025.
- Why
- SAP cited EU sanctions involving Rosneft, while Nayara argued that its Indian-law contracts required continued support and that the suspension threatened refinery operations and public interest.
Nayara Energy’s position
SAP’s position
Applicability of sanctions
Nayara Energy’s position
Nayara argued that EU sanctions should not justify withholding services under contracts governed by Indian law, particularly because India had not formally recognised the sanctions.
SAP’s position
SAP argued that EU sanctions applied across countries and that its Germany-headquartered multinational group was required to comply.
Contractual obligations
Nayara Energy’s position
Nayara said SAP was using foreign trade restrictions to avoid contractual commitments in India, where payments were made in Indian currency.
SAP’s position
SAP said the services would not have been suspended if Nayara had been entirely India-based and had no links to Russian ownership.
Operational impact
Nayara Energy’s position
Nayara said the suspension affected refinery operations, regulatory compliance and GST 2.0 updates, and could expose systems to failures, security vulnerabilities and disruption.
SAP’s position
SAP maintained that the suspension was based on sanctions compliance and asked the court to keep its judgment in abeyance for several weeks.
Key facts
- Court
- Delhi High Court
- Judge
- Justice Vikas Mahajan led the bench
- Affected company
- Nayara Energy
- Service provider
- SAP India Pvt Ltd
- Suspended services
- SAP ECC support, marketplace access, SSCR keys and expert services
- Rosneft stake
- Rosneft holds a 49.13% stake in Nayara Energy
- Refinery significance
- Nayara said its refinery accounts for 8.5% of India’s energy production
- Related dispute
- Microsoft restored its cloud-based services to Nayara in July 2025 after a court petition
Sources
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