Nayara Energy: Court Orders SAP India to Restore Services
The Delhi High Court has directed SAP India to immediately restore all enterprise software and support services to Nayara Energy, ruling that EU sanctions cannot override a contract governed by Indian law. The interim order was passed on September 21, 2026.
What happened
SAP India suspended critical support services to Nayara on July 24, 2025, citing EU sanctions linked to Rosneft’s 49.13% stake in the refiner. The suspended services included SAP ECC support, marketplace access, developer credentials (SSCR keys) and expert services. Nayara, formerly Essar Oil, sued, arguing the suspension breached agreements governed by Indian law.
What the court said
The court held that SAP’s suspension was prima facie a breach of contract and directed it to restore the position that existed before July 24, 2025. It also rejected SAP’s argument that sanctions made performance impossible, noting that SAP had not proven the sanctions applied to its India-based services at this stage.
The bench also pointed to Nayara’s importance, as it caters to nearly 8% of India’s energy needs. It said uninterrupted technical support is “absolutely essential” to avoid system failures, security breaches and unresolved software bugs. The court found that resuming services would cause SAP comparatively little inconvenience, while continued denial could expose Nayara’s critical infrastructure to serious risk.
What to watch
The order is interim, and the court’s observations are confined to this stage. SAP India has since approached the High Court to contest the ruling, so the sanctions question is not settled. Other points to track:
SAP’s compliance statement and exactly which services are restored
Any appeal or modification of the interim order
Whether Nayara moves toward alternative ERP or managed-services partners to reduce vendor risk
Why it matters
The ruling is a notable signal for foreign vendors serving Indian companies under sanctions pressure. It suggests Indian courts will protect contractual rights and critical infrastructure unless a foreign restriction is clearly shown to apply.
Disclaimer: This article is for informational purpos