Hi,
Thanx Peter and patrick.I was able to figure out the problem.There was a 10 milli second delay after each stop signal.

I had written this code long back,when I was a novice.Then after that never updated it.Now I will have to update it.

Any ways there is one more problem, when I deleted the 10 milli second delay,my code didnt work and then I went through the datasheet...added the 10 millisecond delay only to the write cycle(that is after stop signal). deleted the delay after the read stop signal.
now its working fine...rather I should say...working out fine for this appication(where write cycle doesnt matter).

Can I know if someone out there who is using AT24c04...whats the time gap between your two write cycles.

Now that one problem is solved I need to see why the RTC is giving problems...

Rgds
Raj Shetgar