Nayara Energy lawsuit against SAP over software service halt in Delhi HC next week

The Delhi High Court is scheduled to hear Nayara Energy’s lawsuit against SAP India next week regarding the suspension of software services essential to Nayara’s operations. SAP India suspended services in September, citing European Union sanctions imposed on Nayara due to its ties to Russia and refining of Russian oil. Nayara argues that its contract is with SAP India, an Indian entity, and therefore not subject to EU sanctions, claiming this is an “extraterritorial application of law” that threatens Indian energy security. SAP India maintains it cannot provide services without support from its German parent company.

Nayara’s petition describes SAP’s actions as a “sudden, unilateral and illegal suspension of support services,” emphasizing the software’s deep integration into its operations over 18 years and the impossibility of quickly switching to an alternative. The company seeks a permanent injunction against the suspension and specific performance from SAP.

Nayara Energy is a significant player in India’s petroleum sector, operating the second-largest single-site refinery and a network of approximately 7,000 petrol pumps. The suspended SAP ERP Central Component supports critical modules across the company, including finance, supply chain management, and tax compliance, effectively serving as the “central nervous system” of its operations. The suspension has resulted in blocked access to essential services and increased risks of software failures and operational disruptions.

(Source：The Economic Times)