ORA-16607: one or more databases have failed
Cause : The Data Guard broker detected a failure for one or more databases in the Data Guard configuration.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Locate the database(s) with a failure status and correct it.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.