SSL Handshake Error: Handshake_Failure during ChangeCipherSpec from the Server

Question

I am trying to call an API using SSL Certificates. From -Djavax.net.debug = all log I am passing the following steps.

1. Received "Server Hello Done"
2. Client Key Exchange: RSA PreMasterSecret, TLSv1
3. Received Finished Status on Client Key Exchange

4. Change Cipher Spec: Fail

   RECV TLSv1 ALERT:  
   fatal, 
   handshake_failure
   %% Invalidated:  [Session-1, SSL_RSA_WITH_RC4_128_MD5]
   

I am using JDK1.7, with JCE Unlimited Strength Policy files. Thanks for you help.

EDIT: Between Server Hello Done and Client Key Exchange

*** ServerHelloDone
[read] MD5 and SHA1 hashes:  len = 4
0000: 0E 00 00 00                                        ....
*** Certificate chain
*** ClientKeyExchange, RSA PreMasterSecret, TLSv1

Code for setting up SSL Socket Factory:

System.setProperty('javax.net.ssl.keyStore', 'jksfile')
System.setProperty('javax.net.ssl.keyStorePassword', '')
System.setProperty("https.protocols", "TLSv1");

System.setProperty('javax.net.ssl.trustStore', 'C:/Program Files/Java/jdk1.7.0_79/jre/lib/security/cacerts')
System.setProperty('javax.net.ssl.trustStorePassword', '')

SSLContext sslcontext = SSLContext.getInstance("TLSv1");
        sslcontext.init(null, null, null);

    HostnameVerifier allHostsValid = new HostnameVerifier() {
        public boolean verify(String hostname, SSLSession session) {
            return true;
        }
    };
    HttpsURLConnection.setDefaultHostnameVerifier(allHostsValid);
    HttpsURLConnection conn = (HttpsURLConnection) url.openConnection();


    if (conn instanceof HttpsURLConnection){
        conn.setSSLSocketFactory(sslcontext.getSocketFactory());
    }