HPSM throws the below error while trying to login using web client while im still able to login using thick client.
Service Manager Server is currently not available, please try again later.
The error means exactly what is writen: Service Manager Server is currently not available, please try again later.
So you need to check
1 - How you webtier is connecting to your application. For this you can check the parameters provided in above comments in web.xml.
2 - Make sure the server and port used by your webtier is up and running. To make sure, you can try to connect using your client to this port.
3 - Check if you webtier can access your server in the specific port, you can use telnet for this.