Distinguish between winding up under the Companies Act, 2013 and liquidation in terms of the Insolvency and Bankruptcy Code, 2016.

Winding up is a means by which the dissolution of a company is brought about. The main purpose of winding up of a company is to realize the assets and pay the company's debts expeditiously and fairly in accordance with the law. If any surplus is left, it is distributed among the members in accordance with their rights. The Companies Act, 2013 shall continue to govern winding up of companies on various grounds excluding inability to pay debts. On promulgation of the Insolvency and Bankruptcy Code, 2016 the clause relating to ground of inability to pay their debts and provision relating to voluntary winding up of Companies have been deleted. Liquidation is defined as a process by which the life of a company is brought to an end in legal terms, after which it will be properly administered by a liquidator for the benefit of its creditors, members, and other stakeholders. The Insolvency and Bankruptcy Code also exclusively govern the insolvency resolution and liquidation of corporates.