- The policy was based on the principle that the British East India Company was the ultimate paramount power in India. - Several states were annexed under this doctrine, including Satara (1848), Sambalpur (1850), Udaipur (1852 - though later restored), Nagpur (1853), and Jhansi (1854). - Awadh was annexed by Dalhousie in 1856, but on the grounds of misgovernance, although the annexation was deeply resented. - The Doctrine of Lapse was a major cause of resentment among Indian rulers and contributed to the Indian Rebellion of 1857.