Company insolvency and winding up

[Diksha Gupta]

I had a query whether we can use these three terms interchangeably- Insolvency, Winding up and Liquidation of a company or is there some difference between these terminologies ?

AI Summary

Insolvency clarified: distinct from liquidation and winding up, with winding up encompassing liquidation under insolvency law.
Insolvency is the state of inability to pay liabilities; liquidation is the process of selling assets to pay creditors; winding up is the formal termination process that may include liquidation and also covers voluntary closure when a company has achieved its objectives, with statutory definitions treating winding up as encompassing liquidation under applicable insolvency law.