New Delhi, Jul 30 (PTI) Microsoft Corp has restored all services, including email access, to Russian oil giant Rosneft-backed Nayara Energy, following which a lawsuit brought against the move has been disposed of in favour of the refiner.

Both Nayara and Microsoft confirmed restoration of services.

Microsoft restored services just before the Delhi High Court was to hear Nayara's petition against the "unilateral" suspension of services.

"Nayara Energy confirms that all Microsoft services critical to its operations have been fully restored, with no disruption to business continuity and data integrity remaining fully intact," the company said in a statement.

The oil refiner was using paid services from Microsoft Corporation India Pvt Ltd. These were abruptly and unilaterally discontinued by Microsoft on Monday.

In response, Nayara moved the Delhi High Court, which on July 28 issued notice on the petition.

Subsequently, and prior to the hearing, Microsoft restored full access to email, Microsoft Teams, and other services for Nayara on Wednesday at 10.00 Hrs.

When the matter was taken up, the Court recorded that the immediate grievance stood resolved, while expressly granting Nayara the liberty to approach the Court again if issues recur, and directed Microsoft to address any further concerns raised by Nayara.

The petition was disposed of by the High Court in favour of Nayara Energy.

"We acknowledge the prompt intervention of the Hon’ble Delhi High Court in facilitating the resolution of this matter. The petition was disposed of by the High Court in favour of Nayara Energy," the statement said.

Microsoft on Monday suspended its services to Nayara Energy after the European Union included the company in a new round of sanctions against Russia over the Ukraine war.

A Microsoft spokesperson confirmed restoration of Nayara services.

"Microsoft is committed to supporting all its customers in India and worldwide, and has restored services for Nayara Energy. We are engaged in ongoing discussions with the European Union towards service continuity for the organization," the spokesperson said.

Nayara Energy said it "is an Indian company, committed to fueling the nation's growing energy needs..

"As a trusted partner in India’s energy journey, we remain focused on ensuring uninterrupted energy supply, advancing the country's refining and retail capabilities, creating employment opportunities, and supporting India’s path toward energy self-sufficiency and economic growth," it said.

Nayara had called the action by Microsoft unilateral. "Nayara Energy has initiated legal proceedings against Microsoft following the abrupt and unilateral suspension of critical services. Microsoft is currently restricting Nayara Energy's access to its own data, proprietary tools, and products - despite these being acquired under fully paid-up licences," the company had said in a statement on July 28.

Rosneft owns a 49.13 per cent stake in Nayara Energy Ltd, formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonnes per year oil refinery at Vadinar in Gujarat and runs over 6,750 petrol pumps across the country.

An investment consortium SPV, Kesani Enterprises Company, holds another 49.13 per cent stake in Nayara. Kesani is owned by Russia's United Capital Partners (UCP) and Hara Capital Sarl, a wholly-owned subsidiary of Mareterra Group Holding (formerly Genera Group Holding S.p.A.).

"This decision, based solely on Microsoft's unilateral interpretation of recent European Union (EU) sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India's energy ecosystem," Nayara had said.

The firm had said it had filed a petition before the High Court of Delhi seeking an interim injunction and resumption of services to safeguard its rights and ensure continued access to essential digital infrastructure.

"These steps are aimed at preventing any potential disruption to Nayara's ability to meet its obligations to Indian consumers and stakeholders," it had said.

Nayara believes that while the sanctions originate exclusively from the EU, Microsoft - a US-headquartered corporation - chose to withdraw services from the company without any legal requirement to do so under US or Indian law.

"This action has been taken unilaterally, without prior notice, consultation or recourse, and under the guise of compliance. Such moves signal a worrying trend of global corporations extending foreign legal frameworks into jurisdictions where they have no applicability," it had said.

Nayara accounts for about 8 per cent of the country's total refining capacity and 7 per cent of its retail petrol pump network. PTI ANZ ANZ MR