In accordance with the provisions of the Indian Electricity Act 1910, supply to street lights could be disconnected by serving a notice of not less than seven clear days, if the Local Authority fails to pay the bills regularly every month by the due date. In the month of June 1962, a circular letter was addressed to the various Divisional Commissioners, copies of which were endorsed to the field off icers, wherein it was pointed out that the supply for street lighting service to the Local Authorities would be disconnected if there are bills of more than two months outstanding for payment.
  
    
     For disconnection of supply to the street lights on account of non-pay-, ment of energy bills by the local authorities where the bills of more than two months are outstanding for payment, the following procedure should be followed.
  

1.

A notice should be served on the Municipality/Gram Panchayat (as the case may be) that supply will be disconnected if the arrears are not paid within seven days.

2.

If the concerned local authority is not in a position to pay all the dues at a time, but is prepared to pay it in instalments, a definite written undertaking should be obtained from it to the effect that it is prepared to pay the amount of arrears and the interest due thereon as per the agreement, in regular monthly instalments not exceeding three instalments together with the monthly bills and the same may be accepted after obtaining the approval of the Superintencling Engineer of the circle concerned and the supply to the street lighting system may not be disconnected. But if the concerned local authority fails to give such an undertaking or, after the above concession is granted fails to pay the instalment of the arrears and/or the monthly bill in time, action should be taken regarding the disconnection of supply in the following manner.