The word ‘liquidation of a company’ refers to the process of selling a company’s assets. The company can sell its assets to meet obligations and repay liabilities. If a company is liquidated due to bankruptcy, the liquidator can sell its assets to repay all pending liabilities.
Dissolution of a company is when a company is dissolved by order of a Tribunal, i.e. National Company Law Tribunal (NCLT), after the completion of its winding-up process. The company’s dissolution brings its existence to an end, and its name is struck off by the Registrar of Companies (ROC)