Liquidation is the process by which a company is brought to an end, and the assets and property of the company are redistributed.
The first step for liquidation is to file a petition for winding up under section 234 of the Companies Act. After that the court may fix a liquidator. On the making of a winding up order, the petitioner will file the order in the Office of the Registrar of the Joint Stock Companies and Firms. After that the company being wound up is to file the statement of all of its assets, debts and liabilities, creditor details and debts due to the company, which will be verified then. On receiving the statements the liquidator will submit to the court within 160 days of the order a report. Then the liquidator will take the custody of all assets of the liquidating company.