Delhi High Court has directed SAP India to immediately restore enterprise and software support services to Nayara Energy, which had been suspended following EU sanctions imposed on the company.
The court observed that SAP India’s suspension was prima facie in breach of its contractual obligations, with the agreements governed by Indian law.
SAP had argued that continuing support could expose its German parent, SAP SE, to consequences under EU sanctions. The court distinguished between SAP India and its German parent, noting that the Indian entity could continue providing the services.
The court highlighted the importance of uninterrupted software support for Nayara’s critical refinery operations, noting its contribution to India’s energy requirements and the risks associated with software failures or vulnerabilities.
