Liquidation of companies in India is a process wherein a company’s Assets are sold off to pay off outstanding debts, and any remaining funds are distributed among shareholders. It is a process by which a company is dissolved and its assets are liquidated to pay off creditors. The process is regulated by the Companies Act 2013, and is overseen by the National Company Law Tribunal (NCLT).

Liquidation is a process that is often used when a company has found itself in a difficult financial situation, and is unable to pay its creditors. The process involves the sale of all of the company’s assets and the distribution of the proceeds among its creditors. The creditors are usually paid in order of priority, with secured creditors being paid first, followed by unsecured creditors, and then shareholders. The process requires the approval of the NCLT and is overseen by the liquidator appointed by the NCLT.

Before a company can be liquidated, the NCLT must first be satisfied that the company is unable to pay its debts. The NCLT will also take into account the interests of all stakeholders of the company, including shareholders, creditors and employees. The process is done in a transparent manner, and all parties are given an opportunity to present their case before the NCLT.

Once the liquidation process is completed, the company ceases to exist and is removed from the Registrar of Companies. The company’s assets are liquidated and distributed among its creditors, and the remaining funds are distributed among the shareholders.

Liquidation of companies in India is a complex process, and it is important to seek the advice of a professional before embarking on the process. A professional will be able to guide you through the process and ensure that all of your interests are taken into account. It is also important to remember that liquidation may not be the best solution for a company. In some cases, restructuring or reorganizing the company may be a better option.