Hey there 
I confirm that this is a platform issue. One of our servers is faulty and fails to start Instances.
For now, we have moved the server out of the pool, so new Instances should behave correctly. @csharmatech I took the liberty to redeploy your service, it seems to be working as expected.
@krishnakumar34 Please try to redeploy your service, the issue should be gone.
These kind of server failures are inevitable; our platform is supposed to transparently try to allocate on different machines in case it happens, but it did not work this time. We will look into it to make sure it does not happen. Sorry for the inconvenience.