I solved this ,
Actually there is some issue with the drools-guvnor.war .and designer.war.
I was trying to create process in guvnor only ...
Then I started to create process in ecllipse and imported bpmn file to guvnor.
Which solved the issue..
The problem with this error is that we get this even for a converging gateway node.
ProcessLoadError: unable to parse xml : Exception class java.lang.IllegalArgumentException : This type of node cannot have more than one incoming connection!
Eclipse is able to parse it correctly but the same does not happen on kie workbench jboss as 7.1.1-final