One more observation is that below error is logged only after restarting the web logic application. Before restarting the application service, UPDATE was stuck on I/O, getting processed very slowly but no error is logged in SQL Server error log.

SQL Server has encountered 42443 occurrence(s) of I/O requests taking longer than 15 seconds to complete on file [H:\data\***.mdf] in database [****(5). The OS file handle is 0x00000000000007D4. The offset of the latest long I/O is: 0x000009cd260000

After restarting the application, same query ran fine without any I/O latency issue.

Did anyone observe similar problem any time?

Thanks.