ORA-29702: error occurred in Cluster Group Service operation
Cause : An unexpected error occurred while performing a CGS operation.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Verify that the LMON process is still active. Also, check the Oracle LMON trace files for errors.
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.