Kavya,, try this:

create procedure USP_InsertStatusText(@Statustext char(150),@RecievedBy varchar(50),@Deliverydate datetime)

as

BEGIN

declare @date datetime

set @Deliverydate= convert(varchar,@Deliverydate,1) --as [mm/dd/yy] from TB_StatusEntry

insert into TB_StatusText values(@Statustext,@RecievedBy,@Deliverydate)

END

But i tell, you, please store the date field in DateTime and NOT in some other formats.