Failed to reach erlang port mapper (weired issue)

I am trying to add a new server to an existing cluster. I am using community version 2.1.1 on both ubuntu servers on windows azure. I tried to add new server via web interface and via command line. But i am getting following error.

"Failed to reach erlang port mapper. Timeout connecting to “xx.xx.xx.xx” on port “4369”. This could be due to an incorrect host/port combination or a firewall in place between the servers.']

Port 4369 is open on both servers and iam able to connect to 4369 port on other server using telnet

Got the same error when used the following command.

/opt/couchbase/bin/couchbase-cli server-add --cluster=xx.xx.xx.xx:8091 -u user -p password --server-add=yy.yy.yy.yy:8091 --server-add-username=Administrator --server-add-password=password
ERROR: unable to server-add yy.yy.yy.yy:8091 (400) Bad Request
[u’Prepare join failed. Failed to reach erlang port mapper. Timeout connecting to “xx.xx.xx.xx” on port “4369”. This could be due to an incorrect host/port combination or a firewall in place between the servers.']

root@xx.xx.xx.xx:/home/azureuser/project# telnet yy.yy.yy.yy 4369
Trying yy.yy.yy.yy…
Connected to yy.yy.yy.yy.
Escape character is ‘^]’.
^]q

telnet> q
Connection closed.

Need your help here.