Hello Subodh,
>> Does VLAN1 admin down hamper any swicth operation.
No, this just can be a problem ony for managing the device
Layer2 only LAN switches like C2950 can have only one SVI L3 Vlan interface active at any given time.
This is because it is used just to manage it.
Check if at least one interface Vlan X is up/up.
A C2950 behaves in this way: if you define a second SVI and you put it up/up the previously used SVI is shut down.
I remember I tested this in lab.
So if you can telnet/SSH to device this is wanted and not an issue.
Be also aware that all L2 security best practices recommend to do not use Vlan1 at all.
Hope to help
Giuseppe