The energy giant Nayara Energy has now gone to the Bombay High Court after Microsoft's blocking of its access to crucial software systems caused operational disruption across departments.
The petition states that Nayara claims Microsoft suspended service in Azure cloud services, Email Systems, and Office 365 accounts without warning, citing licensing issues. These actions were said to have interrupted communications within the firm, logistics, finance, and even refinery operations, on account of which Nayara moved before the court for an ex parte injunction.
Nayara, backed by Russian oil major Rosneft, stated that the block was “disproportionate and unilateral,” and claimed that Microsoft failed to respond to multiple attempts at reconciliation. The company alleges that Microsoft’s actions could have profound implications for national energy infrastructure and compliance obligations.
The matter was mentioned before Justice M.M. Sathaye on Monday. Nayara’s counsel argued that the software services were essential to business continuity, particularly for operations tied to the Vadinar refinery, one of India’s largest. The legal team emphasized that communications with regulators, vendors, and financial institutions were paralyzed without email access.
On the other hand, Microsoft defended its stance, stating that Nayara had violated licensing terms over the past year by exceeding user limits and deploying enterprise tools beyond agreed usage. A Microsoft spokesperson told media outlets that the company had issued multiple notices and attempted dialogue, but received inadequate resolution.
“While we aim to ensure seamless service for enterprise customers, licensing violations are taken seriously. We remain open to resolving this matter through dialogue,” Microsoft said.
The Bombay High Court begged the parties to maintain the status quo until the next hearing on August 2. The court also suggested that Microsoft may be asked to consider a partial restoration of critical services while the matter is being resolved, in view of the Nayara national fuel supply chain operations being extremely critical.
Industry experts say the case builds tensions between Indian enterprises and global tech vendors, especially around cloud licensing models and data access. With increasing digital dependence in India, legal clarity on disruptive service suspensions and a layer of operational immunity may soon become a well-placed policy priority.
The unresolved dispute may set a precedent for other corporations embroiled in software licensing clashes. For now, Nayara's emergency petition flags the perilous state of digital dependencies on critical infrastructure.