Thanks for the response.. But in my case, database mirroring for 101 databases is working fine :).. I even did a failover, everything seems to be okay. I am not using TDE as mentioned in the article.

I am only seeing the error msg on mirrored server.

The server instance Partner rejected configure request; read its error log file for more information. The reason 1460, and state 1, can be of use for diagnostics by Microsoft. This is a transient error hence retrying the request is likely to succeed. Correct the cause if any and retry.