Justice Vikas Mahajan said that SAP’s abrupt suspension of services following the European Union’s (EU) sanctions on Nayara in July 2025 was, prima facie, in breach of the contractual agreement between the two companies.
The Court ruled that at the interlocutory stage, SAP “cannot take advantage of these unproven EU sanctions to argue that the performance of contract has become impossible”.
“There is no doubt that the contractual relationship between the parties is strictly governed by the domestic laws of the Republic of India.
The agreements gives a conscious and unambiguous primacy to the Indian laws in the event of any conflict with foreign rules or regulations,” the Court stated.
Justice Vikas Mahajan said that SAP’s abrupt suspension of services following the European Union’s (EU) sanctions on Nayara in July 2025 was, prima facie, in breach of the contractual agreement between the two companies.
The Court ruled that at the interlocutory stage, SAP “cannot take advantage of these unproven EU sanctions to argue that the performance of contract has become impossible”.
“There is no doubt that the contractual relationship between the parties is strictly governed by the domestic laws of the Republic of India. The agreements gives a conscious and unambiguous primacy to the Indian laws in the event of any conflict with foreign rules or regulations,” the Court stated.
