Changing the order of the rounded corners worked and with a little bit of change in css.
<div class="c-dialog-rc-top">
<div class="c-dialog-image c-dialog-rc-tl"></div>
<div class="c-dialog-image c-dialog-rc-tr"></div>
<div class="c-dialog-image c-dialog-rc-tc"></div>
</div>
<style>
/* explaining here in short, please refer fiddle for full css */
.c-dialog-rc-tl {float:left;}
.c-dialog-rc-tr {float:right;}
.c-dialog-rc-tc {overflow:auto}
</style>
Link to updated fiddle : http://fiddle.jshell.net/zMtg7/5/