Cannot complete this action -Failed to OpenThreadToken - While creating new site collection in SharePoint 2010

We are not able to create top level site collection or site collection under "Sites" managed path using Central Administration.

Note : using only OOB templates and able to create site collection using PowerShell scripts

We are getting below error

Error : Cannot complete this action. Please try again.

ULS log as below

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ERROR: Failed to OpenThreadToken

Cannot create site: "http://test:1000/" for owner "TestDomain\SPAccount",

Unexpected       System.Runtime.InteropServices.COMException: Cannot complete this action.  Please try again.    at Microsoft.SharePoint.Library.SPRequestInternalClass.CreateSite(Guid gApplicationId, String bstrUrl, Int32 lZone, Guid gSiteId, Guid gDatabaseId, String bstrDatabaseServer, String bstrDatabaseName, String bstrDatabaseUsername, String bstrDatabasePassword, String bstrTitle, String bstrDescription, UInt32 nLCID, String bstrOwnerLogin, String bstrOwnerUserKey, String bstrOwnerName, String bstrOwnerEmail, String bstrSecondaryContactLogin, String bstrSecondaryContactUserKey, String bstrSecondaryContactName, String bstrSecondaryContactEmail, Boolean bADAccountMode, Boolean bHostHeaderIsSiteName, Int32 iDatabaseVersionMajor, Int32 iDatabaseVersionMinor, Int32 iDatabaseVersionBuild, Int32 iDatabaseVer...                acc7bbe9-cae6-451a-b7e9-59f697703209

06/27/2014 16:45:20.75*               w3wp.exe (0x2DDC)                                      0x2250  SharePoint Foundation                         Runtime                               tkau       Unexpected       ...sionRevision)     at Microsoft.SharePoint.Library.SPRequest.CreateSite(Guid gApplicationId, String bstrUrl, Int32 lZone, Guid gSiteId, Guid gDatabaseId, String bstrDatabaseServer, String bstrDatabaseName, String bstrDatabaseUsername, String bstrDatabasePassword, String bstrTitle, String bstrDescription, UInt32 nLCID, String bstrOwnerLogin, String bstrOwnerUserKey, String bstrOwnerName, String bstrOwnerEmail, String bstrSecondaryContactLogin, String bstrSecondaryContactUserKey, String bstrSecondaryContactName, String bstrSecondaryContactEmail, Boolean bADAccountMode, Boolean bHostHeaderIsSiteName, Int32 iDatabaseVersionMajor, Int32 iDatabaseVersionMinor, Int32 iDatabaseVersionBuild, Int32 iDatabaseVersionRevision)   acc7bbe9-cae6-451a-b7e9-59f69770320906/27/2014 16:45:20.93 w3wp.exe (0x2DDC)                                       0x2250  SharePoint Foundation                 Performance                                   nask       High       An S

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Please let us know if you know any resolution steps

Marulasiddappa SB (Swamy)