The decision of the Government of India to disinvest M/s Bharat Aluminum Company Limited, popularly known as BALCO was challenged by the employees of BALCO , State of Chattisgarh (the state in which BALCO is located) and by some public spirited individuals before various High Court and finally before the Supreme Court. It was challenged that the decision to disinvest BALCO was contrary to the legal and social interests of the employees as well as certain other legal issues were raised by different parties. The present study is to analyse the judgment of the Supreme Court in the instant case with a critical angle and also trace its legal impact with a special focus on the impact it has made upon Administrative law.