Unable to upload file while executing scenario from Load Runner Controller


I have created a VUGen script which is uploading a .xls file in the application. I have tried placing the file in "c:" drive and on the network path and both work fine from Vugen. After that I uploaded the VUGen test to ALM using the "All Files Mode" and then created a Controller scenario using the script from ALM. Now when I an running this scenario from Controller I am getting errors on the "web_submit_data" statement which is uploading the file.
The errors are:
1)Action.c(53): Error -26499: Internal Error - Pending in-function resources (EXTRARES) have not been handled (detected in fvLrwScriptApiCleanupUnhandledRemnants)
2)Action.c(53): Error -26488: Could not obtain information about submitted file "c:\CartUpload.xls": _stat32 rc=-1, errno=2 [No such file or directory]. Using an empty file

The upload file is kept at the same location on the controller system as well.

I am using Load Runner 11.52. Controller is installed on Windows Server 2008 machine.
Thanks for helping.