The service would start but the status was showing stopped as you can see below:
[root@hari ~]# /etc/init.d/sshd start
Starting sshd: [ OK ]
[root@hari ~]# /etc/init.d/sshd status
openssh-daemon is stopped
After searching across the internel found that /dev/null is a regular file in the node. /dev/null which is suppossed to be a proper character device and not a regular file.
Hence i decided to recreate the same as a charecter device.
[root@hari ~]# rm -f /dev/null
[root@hari ~]# mknod /dev/null c 1 3
After these the permission should look like these.
[root@hari ~]# ls -lh /dev/null
crw-rw-rw- 1 root root 1, 3 May 09 14:23 /dev/null
After praying to god that this should work i started the service again.
[root@hari ~]# /etc/init.d/sshd start
Starting sshd: [ OK ]
[root@hari ~]# /etc/init.d/sshd status
openssh-daemon (pid 14930) is running...
IT WORKED !!!