Oil refining major Nayara Energy on Wednesday withdrew its lawsuit against Microsoft Corp. after the US techgiant restored critical digital services that had earlier been suspended, impacting the company’s operations.

A bench led by Justice Purushaindra Kumar Kaurav of the Delhi High Court allowed Nayara’s plea to withdraw the case, granting the company liberty to approach the court again should similar grievances arise.

Earlier, on 28 July, the Delhi High Court had issued a notice to Microsoft on Nayara’s plea seeking an interim injunction and immediate restoration of access to essential software, tools, and digital infrastructure.

In its petition, Nayara had accused Microsoft of unilaterally halting services despite the company having valid, paid-up licences for all Microsoft products in use.

The company argued that Microsoft’s move was based solely on the European Union’s sanctions, announced on 18 July, targeting Nayara as part of EU’s broader efforts to pressure Russia over its invasion of Ukraine.

Nayara is partly owned by Russian oil giant Rosneft, which holds a 49.13% stake through a consortium with Kesani Enterprises, including Italy’s Mareterra and Russia’s United Capital Partners.

In court filings and public statements, Nayara maintained that Microsoft’s decision had no basis under US or Indian law, and was a case of corporate overreach.

“This decision, based solely on Microsoft’s interpretation of EU sanctions, sets a dangerous precedent for corporate overreach and raises serious concerns regarding its implications on India’s energy ecosystem,” Nayara said in an earlier statement.

The company further noted that the EU sanctions were unilateral and not binding on US corporations, especially when the impacted entity operates entirely under Indian jurisdiction.

“Despite foreign ownership, Nayara Energy is governed by Indian law and operates as a fully Indian entity,” it said.

The EU sanctions bar Nayara from exporting refined petroleum products to Europe and could potentially affect its engagements with European businesses. Nayara has called the sanctions “baseless, unilateral, and a violation of international law”, and has said it is exploring legal remedies in appropriate forums.

Following the suspension of services by Microsoft, Nayara had also begun transitioning to domestic digital service providers to maintain business continuity. The legal action was initiated to secure immediate relief while broader strategic transitions were underway.

Nayara Energy, formerly known as Essar Oil, operates a 20-million-tonne-per-annum refinery in Vadinar, Gujarat, and runs one of India’s largest private fuel retailnetworks with around 6,800 outlets. The company accounts for about 8% of India’s refining capacity and 7% of retail fuel distribution.

Despite geopolitical headwinds, India has continued to deepen its reliance on Russian crude.

In May, India’s imports of Russian oil surged to a 10-month high of 1.96 million barrels per day, driven by steep discounts compared to globalbenchmarks, according to ship-tracking data from Kpler.