This policy is introduced by Lord Dalhousie in 1848.
According to Hindu Succession Rule if a ruler doesn’t have a male heir he can adopt a son and make him as his Successor.
But according to this policy if a ruler died without male heir his territory would come under British Administration and the adopted son would get only personal properties but not the power of ruling.
Many states in India annexed by British using this policy.
Annexation
In 1848 Satara was the first state which annexed under this policy followed by Jaipur in 1849, Jhansi in 1853 and Nagpur in 1854.
As a result large part of central provinces came under British rule.
This province governed by Chief Commissioner from 1861 onwards.
The Doctrine of Lapse was one of the Root Causes for Great Revolt 1857.
Annexation by Misgovernment 1856
From Warren Hastings, many Governor General advised Nawabs of Awadh to improve their administration but misrule continued.
Nawab assumed that due to his loyalty towards British, it will not annex the Awadh.
But in 1856 Dalhousie annexed Awadh on the ground of Misgovernment and Nawab Wajid Ali Shah was pensioned off.
This annexation offended the Muslim elite and soldiers because many of the soldiers for the British Indian troops came from Awadh.
After annexation the soldiers were treated as equal with the rest of population but before that they had high status in the society.
So this event also contributed for the Great Revolt 1857.