SAP must continue software support to Nayara: Delhi HC

New Delhi: The Delhi High Court's division bench on Wednesday refused to stay a September order of a single judge directing SAP India to restore full and uninterrupted software services through its SAP Marketplace and online service system to Indo-Russian oil refining and marketing company Nayara Energy.

A division bench comprising Justices Prathiba M Singh and Dinesh Bhatt observed that while the single judge may have taken a "bold opinion", SAP's support system was "essential" to Nayara Energy's operations. It said SAP India would have to continue providing access to its software services in accordance with the single judge's order, noting that Nayara would incur huge costs if access were denied.

Justice Singh said the matter required consideration, particularly given the importance of SAP's support system to Nayara's operations, and sought a response from the company. The bench also observed that SAP India could approach the court if there was any change in circumstances, such as the European Union immediately penalising it for its dealings with Nayara Energy. The matter has been posted for further hearing on January 11.


In September, a single-judge bench of Justice Vikas Mahajan had allowed Nayara Energy's plea seeking restoration of essential software services after SAP India suspended critical support services following the imposition of EU sanctions against the Indian refinery operator. Germany-based SAP stopped providing services to Nayara Energy after the European Union, on July 18 last year, imposed a fresh set of sanctions targeting Russian interests as part of its efforts to exert economic pressure on Moscow over the war in Ukraine.

Justice Mahajan had held that SAP India's argument that its parent company, SAP SE, faced the threat of criminal prosecution under German law was, prima facie, not a tenable defence.