Following is the summary of the troubleshooting and the steps taken to resolve the secure channel issue.
-Reset secure channel using nltest and reboot the server , after which the issue did not reoccur.
-We also noticed the netlogon issue mentioned that the rpc was unavailable because of which it was not able to establish a secure session. Increased the number of DNS servers in the network adapter.
-Also found that the network card drivers were outdated (v4.x). the latest were around (7.x). Have advised to update the network card drivers.
-We forced the licensing server discovery over IP so that it does not depend on DNS in an event of a dns failure.
- For the access denied problem, we confirmed that it was a issue by design after not limiting the user to a single session.