Cause
The Mughal emperor Aurangzeb's Deccan campaigns against Bijapur and Golconda had put considerable strain on the Mughal exchequer. To meet these expenses, Aurangazeb ordered the Governor of Punjab, Azim Khan, to recover annual tributes from the rulers of hill states, who had been defaulting on the payment for three consecutive years.
Azim Khan assigned the duty of collecting tributes to Mian Khan, the viceroy of Jammu. The duty of collecting tributes from Kangra and adjoining principalities was assigned to Alif Khan (or Alaf Khan).
Alif Khan first approached Raja Kirpal Chand (or Bhim Chand Katoch) of Kangra. The Raja told him that Raja Bhim Chand of Bilaspur (Kahlur) was the most powerful king in the region; if he pays tribute, the others will follow. Raja Dayal of Bijarwal (or Bijharwal) was persuaded by Kirpal to meet Alif Khan's demands. At Raja Kirpal's suggestion, Alif Khan proceeded towards Bhim Chand's capital. He halted at Nadaun and sent his envoy to Bhim Chand of Bilaspur with his demands. However, Bhim Chand refused to pay the tribute.
Raja Bhim Chand of Bilaspur formed an alliance with the rest of the hill Rajas, and also sought the support of Guru Gobind Singh. The Guru, who was against the idea of paying tributes to the Mughals, decided to support Bhim Chand.
Read more about this topic: Battle Of Nadaun