The problem is exactly the same as described here:
Exception java.util.zip.ZipFile.ensureOpenOrZipException with WAS 7
Following the resolution, I changed my application module to 2.4 and it resolved the issue. I did not changed the path of wsdl as mentioned in the resolution. But once the application module is changed, the webservices.xml file is not getting generated. I need the xml file to be generated.
Anyone having any alternative solution to this problem where I do not need to change the application module?
Regards,