Nayara Energy pulled back its Delhi High Court plea after Microsoft restored crucial services suspended over EU sanctions. The dispute arose from alleged breach of contract and was resolved without interim court orders.
New Delhi: On Juy 30, Nayara Energy Limited, a private oil refining company in India partly owned by Russia’s Rosneft, has taken back its petition filed in the Delhi High Court against Microsoft Corporation (India) Pvt Ltd.
This decision came after Microsoft restored important digital services that had earlier been suddenly stopped, leading to a peaceful resolution between both parties.
The matter was being heard by Justice Purushaindra Kumar Kaurav. Earlier, on July 28, the Court had issued a notice to Microsoft.
This was based on Nayara’s complaint that Microsoft had suddenly and without warning suspended services that were covered under the Microsoft Business and Services Agreement (MBSA).
Nayara’s lawyers, Senior Advocates Rajiv Nayar and Dayan Krishnan, argued that this sudden stoppage of services had created a major disruption in the company’s day-to-day functioning.
They submitted that Microsoft’s action went against the terms of their agreement and demanded immediate protection from the Court under Section 9 of the Arbitration and Conciliation Act, 1996.
In court, Rajiv Nayar and Dayan Krishnan stated that the company had been taken by surprise and that
“the unilateral suspension of services under the Microsoft Business and Services Agreement (MBSA) had caused severe operational disruption.”
They highlighted that Nayara’s access to essential tools like cloud storage and emails was suddenly cut off, even though the company had paid for the licenses in full.
This disruption came soon after the European Union placed sanctions on Nayara’s Vadinar refinery on July 18, 2025, as part of its global sanctions against companies with links to Russia.
Microsoft reportedly stopped its services to Nayara as a way of following these EU sanctions. However, Nayara strongly disagreed with this action.
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It claimed that there was
“no legal basis under Indian law or the contractual terms of the Microsoft Business and Services Agreement (MBSA)”
to stop the services.
The company further alleged that it had been
“denied access to its own data despite holding fully paid licenses,” and that this caused “significant operational hardship.”
Because of this unexpected suspension, Nayara quickly approached the Delhi High Court, seeking emergency help and immediate restoration of its digital services through a petition under Section 9 of the Arbitration and Conciliation Act. The company wanted the Court to order Microsoft to restart the services as per the contract.
When the matter was taken up again on July 30, the Court was informed that Microsoft had restored the services to Nayara. Based on this, the lawyers for Nayara said they no longer wanted the Court to pass any urgent orders.
However, they still requested the Court to send a formal notice regarding the main arbitration matter.
“We are not pressing for interim orders,” said Nayara’s counsel, “but we urge the Court to consider issuing notice in the main arbitration application.”
Justice Kaurav, after hearing both sides, observed that since the services had already been restored, there was no need to continue with the Section 9 petition.
He said,
“Since the services had already been restored, it would not be appropriate to keep the Section 9 petition pending.”
The Court then allowed Nayara to take back the petition and clarified that “the petitioner would be at liberty to approach the Court again if any grievance arose in the future.”
Microsoft was represented in court by Senior Advocate Sandeep Sethi.
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