Delhi High Court disposes of suit after Microsoft restores services to Nayara Energy
Delhi High Court disposes of suit after Microsoft restores services to Nayara Energy
The Indian company affirms its commitment to the country’s energy needs and uninterrupted supply
Just before the Delhi High Court was to hear the petition, US-headquartered Microsoft Corporation restored all services, including email access, to Russian oil giant Rosneft-backed Nayara Energy (formerly Essar Oil Limited).
Thus, the lawsuit has been dropped, and both entities have confirmed restoration of services.
The statement by Nayara read, “We confirm that all Microsoft services critical to our operations have been fully restored, with no disruption to business continuity and data integrity remaining fully intact.”
The oil refiner Nayara was using the paid services from Microsoft, which were abruptly and unilaterally discontinued. Therefore, Nayara approached the court, which issued a notice regarding the petition.
Meanwhile, after the resolution, the court has granted Nayara the liberty to approach it again if the issue recurs. It directed Microsoft to address any further concerns raised by Nayara.
Early this week, Microsoft suspended its services to Nayara after the European Union (EU) included the company in a new round of sanctions against Russia over the Ukraine war.
However, the spokesperson for the tech giant has now stated, "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 organization.”
Nayara added, “We are an Indian company, committed to fueling the nation's growing energy needs. As a trusted partner in our energy journey, we remain focused on ensuring uninterrupted supply, advancing the country's refining and retail capabilities, creating employment opportunities and supporting India's path towards self-sufficiency and economic growth.”
Earlier, Nayara had called the action by Microsoft unilateral. It expressed, "Nayara has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services. Microsoft is currently restricting Nayara Energy's access to its own data, proprietary tools, and products - despite these being acquired under fully paid-up licences.”
Rosneft owns a 49.13 percent stake in Nayara, which owns and operates a 20 million tonnes per year oil refinery at Vadinar in Gujarat and runs over 6,750 petrol pumps across the country.
An investment consortium SPV, Kesani Enterprises Company, holds 49.13 percent stake in Nayara. Kesani is owned by Russia's United Capital Partners (UCP) and Hara Capital Sarl, a wholly-owned subsidiary of Mareterra Group Holding (formerly Genera Group Holding).
After Microsoft’s suspension move, Nayara had argued, "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 ecosystem.”
The firm had sought an interim injunction from the court and resumption of services to safeguard its rights and ensure continued access to essential digital infrastructure.
"These steps are aimed at preventing any potential disruption to Nayara's ability to meet its obligations to Indian consumers and stakeholders," it had said. It added, "This action has been taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance. Such moves signal a worrying trend of global corporations extending foreign legal frameworks into jurisdictions where they have no applicability.”
Nayara accounts for 8 percent of the country's total refining capacity and 7 percent of its retail petrol pump network.
