I happened to have find solution of my own problem.
I solved my original problem by removing old spring 3.0.x jars which were still there in
WEB-INF/lib
directory (but not in class path).
Second thing and answer to my second problem is that, In a Spring 3.2.x jar or above environment, Ajax call with content-type
application/json
do not support calls to url with .htm/.html extensions as web-app server throws 406 error. I had to change url extensions to anything else (.json I used for clarity).
Though there could be a different solution as well, but after searching a lot this is what proved to be a quick fix for me. Thanks for all the help.