I was able to catch the root cause of the problem.
My Jdeveloper had path set of D:\LOSHDB\jars\j2ee.jar which might be older version of
j2ee.
(In older version of j2ee, it generates include(
String) method in the servlet)
Oracle JDeveloper 10g R3 supports newer version.
I had to add JSP Runtime library to the classpath and keep it on top of j2ee.jar, it made it compile.
(In newer version it generates, include(String, boolean) in the servlet.
Point to Remember :
If you are compiling JSPs using a specific editor, make sure you add JSP Runtime into its classpath.
You will not face problems, what ever version it may be.