After the Battle of Buxar (1764), the Company appointed Residents in Indian states. Through the Residents, the Company officials began interfering in the internal affairs of Indian states. Sometimes the Company forced the states into a "subsidiary alliance". According to the terms of this alliance, Indian rulers were not allowed to have their independent armed forces. They will be protected by the Company but had to pay for the "subsidiary forces" that the Company maintain for the purpose of this protection. If the Indian rulers failed to make the payment, then part of their territory was taken away as a penalty.