Stories
Delhi High Court Orders SAP India to Restore Services for Nayara Energy
- •The Delhi High Court directed SAP India to immediately resume enterprise and software support services to Nayara Energy, granting interim relief to the refiner.
- •Justice Vikas Mahajan ordered SAP India to restore services to the pre-July 24, 2025, status, when Nayara's access was blocked due to EU sanctions.
- •The court ruled that contracts between SAP India and Nayara Energy are governed by Indian law, which prevails over conflicting foreign laws.
- •Nayara Energy, a critical infrastructure provider, caters to 8% of India's energy needs, making uninterrupted technical support essential.
- •The court rejected SAP India's argument regarding potential prosecution of its German parent, stating that fulfilling contractual obligations under a court order would not lead to imminent prosecution.
Key Questions Answered
The Delhi High Court granted interim relief because the contracts between the companies are governed by Indian law, which prevails over foreign laws. Furthermore, the court emphasized that Nayara operates critical infrastructure meeting about 8% of India's energy needs, making uninterrupted technical support essential.
SAP India suspended its services after Nayara Energy was placed on the European Union sanctions list. SAP argued that its German parent company, SAP SE, was bound to comply with EU and German laws, and continuing the services could expose the corporate group to legal penalties.
The dispute started when SAP blocked access to support services on July 24, 2025, after Nayara was added to the EU sanctions list, prompting Nayara to approach the Delhi High Court in September 2025. Following the interim ruling for restoration, the lawsuit is scheduled to be heard next by the roster bench on September 30.
