Russia’s Rosneft-backed Nayara Energy on Wednesday withdrew its case against Microsoft from the Delhi High Court after the US tech giant resumed its critical services to it.
The services, including outlook email accounts and Microsoft Teams were suspended, last week in view of the European Union sanctioning Nayara Energy, a major buyer of Russian Oil.
Nayara Energy, formerly known as Essar Oil, had then moved the court seeking resumption of services by Microsoft to safeguard its rights and ensure continued access to essential digital infrastructure.
Accusing Microsoft of “corporate overreach,” the Indian oil refiner claimed that the US firm was not bound by EU sanctions and the abrupt suspension of licensed Microsoft tools and services had impacted its critical business operations
“Microsoft is currently restricting Nayara Energy’s access to its own data, proprietary tools, and products, despite these being acquired under fully paid-up licenses,” senior counsel Rajiv Nayyar and Dayan Krishnan, appearing for Nayara, argued, adding that Microsoft’s unilateral decision was based solely on interpretation of recent European Union sanctions against Russia.
“While the sanctions originate exclusively from the EU, Microsoft–a US-headquartered corporation—has chosen to withdraw services from Nayara without any legal requirement to do so under US or Indian law,” they argued, adding that Microsoft had acted without any notice
“At least they should give 3–4 days’ notice before terminating. There can’t be an abrupt shutting,” the lawyers told the court.
However, Microsoft’s senior counsel Sandeep Sethi informed the court that the company had restored all suspended services to Nayara but no assurances could be given for the future. “They (Nayara) are a sanctioned entity by the EU. We have restored today, but I can’t make these statements for the future,” he submitted.
Taking note of this, a bench led by Justice Purushaindra Kumar Kaurav allowed Nayara to withdraw the petition, granting it liberty to approach the court again should similar grievances arise.
“Earlier, without notice, they had shut their services. You came to court. Now they have restored it. The grievance stands mitigated. In the future, we believe they would not do the same exercise, and as and when they intend to, they will perhaps give you notice. If they don’t, you (Nayara) can come back to court,” the court said.
Nayara operates a major refinery in Gujarat and controls over 6,000 retail fuel outlets across India,
On July 18, the European Union had imposed a new set of sanctions targeting Russian interests, including an Indian entity Nayara Energy for the first time. The sanctions by the European Union were part of its continuing efforts to exert economic pressure on Russia over its war in Ukraine.
