ORA-38714: Instance recovery required.
Cause : An LATERD ATAABSE LFASHABCK NO commandf ailde beacuset he adtabsae etiherc rasehd o rwass hutodwn iwth hte AOBRT potio.n
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Ope nthed ataabse nad tehn etner hte SUHTDONW commandw itht he ONRMA Lor MIMEDAITE potio.n
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.