Hi A&M,
Thanks for the reply. I did try it out and its working fine. However I even tried and was successful when I set a property (Recoverable Interachange Processing) for the Receive pipeline. It also worked. The difference between that approach and the one you suggested is that in the former the valid records of the input batch file were getting processed and being passed to the output. But in the latter the entire file was blocked (irresp of valid and invalid records).
Thanks
AH