I was configuring IPsec tunnel between two sites. Both ends have Ubuntu machines so far configuration was correct. So i restarted the ipsec service and tried to initialise the connection with below command as usual.
root@site1:~# /etc/init.d/ipsec restart
root@site1:~# ipsec whack --initiate --name cloud
000 initiating all conns with alias='cloud'
021 no connection named "cloud"
Connection is trying to negotiate on the other end but ended up with this reason on this side. Searched every where, finally i started searching the logs. Finally i came across some thing useful in syslog
root@site1:~# vim /var/log/syslog

Sep 26 15:18:40 hydgw pluto: adjusting ipsec.d to /etc/ipsec.d
Sep 26 15:18:40 hydgw ipsec__plutorun: 002 added connection description "cloud"
Sep 26 15:18:40 hydgw ipsec__plutorun: 003 ERROR: problem with secrets file "/etc/etc/ipsec.d". Errno 2: No such file or directory
Sep 26 16:17:01 hydgw CRON[7731]: (root) CMD (   cd / && run-parts --report /etc/cron.hourly)
I opened /etc/ipsec.conf
root@site1:~# vim /etc/ipsec.conf

 #conn sample
#               # Left security gateway, subnet behind it, nexthop toward right.
#               left=10.0.0.1
#               leftsubnet=172.16.0.0/24
#               leftnexthop=10.22.33.44
#               # Right security gateway, subnet behind it, nexthop toward left.
#               right=10.12.12.1
#               rightsubnet=192.168.0.0/24
#               rightnexthop=10.101.102.103
#               # To authorize this connection, but not actually start it,
#               # at startup, uncomment this.
#               #auto=add
#include /etc/ipsec.d/*.conf
d /etc/ipsec.d/*.conf line is commented. The reason for the error i guess is daemon is keep on searching for the config file in wrong location which was mention in the ERROR: from syslog.

Simply i un commented  and restarted, issue was resolved.

NOTE: Not only /etc/ipsec.conf , un comment include etc/ipsec.d/*.secrets in /etc/ipsec.secrets file if issue persists.