So, my findings say that it's not the receiver and transmitter pair at fault. I have tested the same circuit with PT encoder and decoder and IT WORKS LIKE A CHARM.

Problem is with my PIC.
But I am going bonkers figuring it out. Can one of the gurus here please have a deeper look what might be the cause of the problem. I also tried manchester encoding on the data. Same results. PIC hangs!

Please help.....