The present invention is based on the findings that bone marrow (BM)-derived progenitor cells more specifically mesenchymal stem cells (MSCs), hematopoietic stem cells (HSCs) and uncommitted hematopoietic cells (lin−) are capable of regenerating liver in case of injury. The invention provides a method for treating genetic disorder like Alpha1-antitrypsin deficiency (A1-ATD) by administering BM derived Lin− cells in human mutant A1-AT expressing transgenic mouse model. The invention also provides the state of art for replacement of mutant host hepatocytes by transplanting wild-type uncommitted donor (lin−) cells.