दिल्ली हाई कोर्ट ने SAP इंडिया को नायरा एनर्जी की सपोर्ट सेवाएँ तुरंत पुनर्स्थापित करने का निर्देश दिया

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The Delhi High Court on Monday directed SAP India to immediately resume all enterprise and software support services to Nayara Energy, granting interim relief to the refiner in its dispute with the German software major over the suspension of services.

Justice Vikas Mahajan directed SAP India to restore the position that existed before July 24, 2025, when the company blocked Nayara’s access to SAP’s support services citing European Union sanctions.

The court held that the contracts between the two companies are governed by Indian law. It noted that the agreements specifically provide that Indian law would prevail if there is a conflict with foreign laws or regulations.

The dispute arose after Nayara was added to the EU sanctions list in July 2025. SAP subsequently suspended support, saying its German parent, SAP SE, was required to comply with the sanctions.

SAP argued that continuing the services could expose the group to penalties under EU and German laws. Nayara, however, maintained that its contracts were with SAP India and were governed by Indian law.

The court said Nayara operates critical infrastructure and caters to about 8% of India's energy needs. It said uninterrupted technical support was essential given the scale and importance of its operations.

The court also rejected, at the interim stage, SAP India's argument that the possibility of prosecution of its German parent justified withholding services. It said there could not be a real or imminent prospect of prosecution when SAP India was performing its contractual obligations under a court order.

The application was therefore allowed, with SAP India ordered to immediately resume services under the respective agreements. The court clarified that its observations were preliminary and would not affect the final decision in the suit.

The matter will next be heard by the roster bench on September 30.

Justice Vikas Mahajan directed SAP India to restore the position that existed before July 24, 2025, when the company blocked Nayara’s access to SAP’s support services citing European Union sanctions.

The court held that the contracts between the two companies are governed by Indian law. It noted that the agreements specifically provide that Indian law would prevail if there is a conflict with foreign laws or regulations.

The dispute arose after Nayara was added to the EU sanctions list in July 2025. SAP subsequently suspended support, saying its German parent, SAP SE, was required to comply with the sanctions.

SAP argued that continuing the services could expose the group to penalties under EU and German laws. Nayara, however, maintained that its contracts were with SAP India and were governed by Indian law.

The court said Nayara operates critical infrastructure and caters to about 8% of India's energy needs. It said uninterrupted technical support was essential given the scale and importance of its operations.

The court also rejected, at the interim stage, SAP India's argument that the possibility of prosecution of its German parent justified withholding services. It said there could not be a real or imminent prospect of prosecution when SAP India was performing its contractual obligations under a court order.

The court said restoring support would not cause inconvenience to SAP India, while withholding it could leave Nayara's systems vulnerable to failures, security issues and operational disruption.

The application was therefore allowed, with SAP India ordered to immediately resume services under the respective agreements. The court clarified that its observations were preliminary and would not affect the final decision in the suit.

The matter will next be heard by the roster bench on September 30.

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