After the overthrow of the Afshar Empire led by Nadir Shah the prominent state official Panahali bey Djavanshir founded one of independent states of Azerbaijan - Karabakh. He was born in the Saridjaly village of Karabakh. Mirza Djamal, the vizier of Karabakh khanate wrote: "Late Nadir shah after occupying Karabakh, Ganja, Tiflis and Shirvan provinces, invited all the working people of cities and villages in his place and gave them job among his servants and paid them salary, they gained respect and ranks.

He also involved Panah ali khan best known as Panahali bey Sarydjaly Djavanshir, who distinguished himself in every action, was famed and unconquerable in any battle and brave in all the wars with Nadir Rum»s troops (the wars with Osmanly empire in 1730th are implied here -Y.M, K.S). Yet after the Mughan congress Nadir laid punishment on those Karabakhians who did not recognize his power and exiled Muslim population to Afghanistan and Khorasan.

Panakhali»s brother Farzali khan, who protested against these measures was put to death. In period of the Shakh staying in Khorasan, Panakhali bey took the occasion and run away to Karabakh province together with his relatives and closes in 1737-1738. Shah informed about his escape sent couriers after him to prevent him from running away. Nadir shah instructed the leaders of Azerbaijan, Ganja, Tiflis and Shirvan to catch Panah khan wherever they see him and send to the shah»s residence. Though by the order of the shah Panah ali and his family were tormented and set a penalty, that did not work.

Thus, Panah ali khan dodged the responsibility to subdue to Nadir shah and bid to rule his native Karabakh in the most democratic way. As a result, an independent Azeri state-Karabakh khanate established following the death of Nadir shah.

After the declaration of the establishment of independent Karabakh khanate the main goal was to strengthen it. The first measure taken by Panakhali was to return those Muslims driven by Nadir shah to their native land. The return of displaced families and their resettlement of their native land strengthened Karabakh khanate. The future khan of Karabakh 15 year-old Ibragimkhalil was among those who had been first to return.

In period of Karabakh khanate establishment it did not comprise cities as Tebriz, Ardebil, Ganja, Shamakhy, Baky, Nakhichevan, Sheki, Derbend. However, the existence of such politico-economic centers would play a great role in the further development of the khanate. Beside military-political works Panah Ali also made a great progress in the military installations and establishment of towns.

One of the first steps taken in this sphere was the construction of the Bayaty tower named after the ancient Azeri-Turkish tribes bayats in 1748. "The khan assembled his family, relatives and aged men there. The people surrounding him and those who heard about his progress and kind treatment moved to the Bayaty tower from Tebriz and Ardebil.

Panakh khan»s activity in the sphere of creation of an independent state promoted his official recognition. "Mirza Djamal wrote: "Adyl shah»s order on the attachment of the title of "khan" to Panakh Ali and on his appointment the ruler of Karabakh khanate along with valuable dressing-gowns, golden saddled horses and a sword designed with precious stones were brought to the tower Bayaty by the close man of Serdar Amir Aslan in 1161 by the Muslim calendar, in 1745 by Christian calendar (1748 is correct).

In fact Adil shah»s order was a behindhand document. The real title had been deserved much earlier than the order and regardless of it.

An unsuccessful raid of Sheki khanate to Karabakh played a great role in the recognition of Panah Alia as a leader of Karabakh khanate. Sheki khan Hadjy Chelebi, following his unsuccessful Bayaty battle announced: "Panah Ali has previously been a silver without coin. But we came and attached him this coin and went away" (or "Pahah Ali declared him khan while I confirmed it by my defeat").

These words of Hadji Cheleby turning to a popular saying had even much power than Adil shah»s order. Ahmed bey Djavanshir wrote:"…After the victory (The Bayaty battle-Y.M, K.S) the legend about Panah Ali»s courage subdued all Muslim tribes, residing in Karabakh, to Panah Ali with no resistance".

At the same time the Bayaty battle proved the vulnerability of the tower to further historical events. Therefore, it was necessary to construct a new one. Mirza Adygozel bey wrote: "Panah Ali khan built a tower in Ternekut best known as Shahbulaghy. He also constructed Mosques, houses and bazaars and public baths from stones and limestone. After the works were completed he settled there in 1165 (1751)".

The Kurekchay agreement

With the strengthening of Panah khan the feudal lords-monarchs, supporting scarcity, increased their subversive activity. It was necessary to prevent that by some military methods. Otherwise, the khanate would lose its territorial integrity. The original sources also confirm that.

Mir Mehdi Khazani wrote impartially: "The five of Karabakh districts have been separated and each acquired its own name…". Mirza Adygozel bey wrote about the Karabakh feuds-meliks: "Dizag is one of these feuds. Its ruler is Melik Yegan. He escaped from Lori and in period of Nadir»s ruling he was appointed the melik and gained respect by an order of the shah.

The second is in Varan. Melik Shahnezer was its ruler. He is of a more ancient family and has bigger inheritance. His ancestors were the aristocrats of Goycha. Then they escaped and came to Varan province and lost their heads from the wealth they had in their lands.

The third is Khachyn. Its is ruled by the son of Hasan Djalalyan. Their majesty designed the power in a proper way and became a ruler. This family which died of this ruling career was not the independent ruler of the region. At last the state flag of the late Panah khan Djavanshir and the sun lightened every corner of Karabakh province. At that time the Khyndyrystan Melik Mirza khan by the order of these immortal state officials minted coins in the name of… After that his son Allahverdi and grandson Melik Gehreman also glorified their country.

The fourth is Chilebord district. Its ruler was Allahqulu. His ancestors were from Maghaviz. They came and became the rulers of Chilabord and settled at vaster areas in the middle stream of the Terter river. They turned the Cheymukh tower, which had a very hard destiny, into there shelter, home and land ( Cheymukh is a brief name of Chilebord" They ruled Chilabord in the most democratic way and thus became famous. .. Nadir shah gave him a title of sultan and a gown…

The fifth is the Tbilisi district. The ruler is Malik Usub. His ancestors came from Shirvan and stayed in Talysh village for some time. Some of them have been the rulers more than once. Later Melik Usub occupied the Gulistan tower and settled there."