Hi All,
Figured what is the issue. Here is the background
Our application host on MS Azure and the machine I am using is inside our org intranet behind the firewall. So direct connection was not possible. So I had to use proxy server.
By manually checking thru firefox connection log I can see for SSL connection, application is using SSL version TLSv1, however while running the script from LoadRunner, by default it is sending SSL version SSL2/3. This is the root cause causing the problem. So below line did the trick by forcing LR to run SSL version TLS.
web_set_sockets_option("SSL_VERSION","TLS);
This resolved the issue.
njoy ..