I tried the below procedure and been successful.
1. On the exchange server delete the database to be recovered from the Recovery Storage Group. Then
delete the Recovery Storage group as well.
2. Once the above has been done please delete the files for the recovery storage group
physically from the location on the hard drive
3. Delete the files from the exchange restore from the
temp location on the exchange server, looks like C:\temp as per the logs.
4. Recreate the Recovery storage group and the database to be recovered.
5. Uncheck the public folder from the restore. I actually exclude the public folder in restore, if I select public folder in restore selection the restore getting partially successful (offcourse RSG is only use for MailBox recovery not for public folder recovery"correct if i am wrong")