The Delhi high court has issued a notice to US tech giant Microsoft Corp. on a plea filed by Nayara Energy Ltd, seeking an interim injunction and the immediate restoration of services critical to its operations.
A bench led by Justice Purushaindra Kumar Kaurav admitted the Russian oil major Rosneft-backed firm's petition and directed Microsoft to respond.
The company contends that Microsoft’s move was based solely on European Union (EU) sanctions announced on July 18, even though the sanctions were not binding in the jurisdictions where the software giant or Nayara operates.
The Delhi High Court has taken cognisance of Nayara's complaint and issued notice to the US-based tech major, seeking its response. The interim plea seeks urgent restoration of services critical to the company’s operations.
A bench led by Justice Purushaindra Kumar Kaurav admitted the petition and directed Microsoft to file its reply. The matter is now listed for further hearing on July 30.
In a statement, Nayara described Microsoft’s action as “corporate overreach,” warning that such unilateral enforcement of third-party sanctions by a US firm could set a “dangerous precedent” and pose risks to India’s energy security.
The company emphasised that the EU sanctions were not applicable to Microsoft under US or Indian law, and said it had fulfilled all its contractual obligations, including fully paid-up licences for the digital services now suspended.
Nayara also stated that the disruption had jeopardised critical business continuity and access to essential operational infrastructure.
On July 18, the EU imposed a fresh round of sanctions targeting Russian economic interests. For the first time, these included an Indian entity—Nayara Energy. The sanctions prohibit the company from exporting refined petroleum products to Europe and potentially affect its dealings with European businesses.
Nayara slammed the move as “baseless, unilateral, and a violation of international law.” The company has said it is exploring legal options in response to the sanctions, while simultaneously seeking judicial relief in India.
Nayara Energy, formerly known as Essar Oil, operates a 20-million-tonne-per-annum refinery in Vadinar, Gujarat, and runs a network of around 6,800 fuel retail outlets across the country. It accounts for about 8 percent of India’s refining capacity and 7 percent of retail fuel distribution.
Rosneft, the Russian state-owned oil major, and Kesani Enterprises—a consortium that includes Italy’s Mareterra and Russia’s United Capital Partners—together hold a 49.13 percent stake in Nayara.
Despite foreign ownership, the company asserts that it is governed by Indian law and functions as a fully Indian entity.