Initialization failed exception when running on Google App Engine

[xybrek via StackOverflow]

I have a GAE application that works fine with Eclipse + Google plugin when executed within the localhost environment, however when I upload it to GAE server, (appspot) I get this error:

Uncaught exception from servlet
javax.servlet.UnavailableException: Initialization failed.
    at com.google.apphosting.runtime.jetty.AppVersionHandlerMap.createHandler(AppVersionHandlerMap.java:228)
    at com.google.apphosting.runtime.jetty.AppVersionHandlerMap.getHandler(AppVersionHandlerMap.java:194)
    at com.google.apphosting.runtime.jetty.JettyServletEngineAdapter.serviceRequest(JettyServletEngineAdapter.java:134)
    at com.google.apphosting.runtime.JavaRuntime$RequestRunnable.run(JavaRuntime.java:447)
    at com.google.tracing.TraceContext$TraceContextRunnable.runInContext(TraceContext.java:454)
    at com.google.tracing.TraceContext$TraceContextRunnable$1.run(TraceContext.java:461)
    at com.google.tracing.TraceContext.runInContext(TraceContext.java:703)
    at com.google.tracing.TraceContext$AbstractTraceContextCallback.runInInheritedContextNoUnref(TraceContext.java:338)
    at com.google.tracing.TraceContext$AbstractTraceContextCallback.runInInheritedContext(TraceContext.java:330)
    at com.google.tracing.TraceContext$TraceContextRunnable.run(TraceContext.java:458)
    at com.google.apphosting.runtime.ThreadGroupPool$PoolEntry.run(ThreadGroupPool.java:251)
    at java.lang.Thread.run(Thread.java:679)

I am not sure whether I have problems in my application as it works fine in localhost

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