Microsoft restores data service of Nayara Energy
Nayara moved the Delhi High Court after Microsoft abruptly suspended access to critical services, including Outlook email, Microsoft Teams, cloud tools, and proprietary data, despite the company having fully paid for its licenses.
According to media reports citing the petition, Nayara accused Microsoft of unilaterally cutting off services without prior notice or consultation, calling the move a 'dangerous corporate overreach' that posed a serious threat to its energy operations and communications. In the interim, Nayara temporarily switched to internal communication tools provided by India's Rediff.com, although this did not restore previously stored email or Teams data.
On July 30, ahead of the Delhi High Court hearing, Microsoft restored all critical digital services to Nayara Energy, including email and collaboration tools. Microsoft confirmed the restoration and noted it was in ongoing discussions with the European Union to ensure service continuity, given the EU sanctions—the root cause behind the suspension—imposed on Nayara on July 18 as part of broader measures targeting entities linked to Russia.
Nayara's legal team then officially withdrew the petition, with the court allowing the withdrawal and granting Nayara the liberty to approach the court again if a similar disruption occurs in the future. Nayara confirmed that business continuity and data integrity were fully intact following the restoration
In essence, the case revolved around the suspension of critical services by Microsoft in response to EU sanctions, Nayara's assertion of its contractual and legal rights to paid‑for services, and the disruption to operations and communication. The dispute was swiftly resolved when Microsoft reversed its suspension just before the court hearing, leading the Delhi High Court to close the matter—with a caution that Nayara may return for legal recourse if services are terminated again without notice.
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