After upgrading Red Hat Enterprise Linux 6.1 to 6.4, kernel panics with message "mount: /dev/sda1 already mounted or /sysroot busy"

Issue

• System is upgraded from Red Hat Enterprise Linux 6.1 to 6.4
• While booted with the new kernel i.e. 2.6.32-358.el6.x86_64, system panics with the following error message.

mount: /dev/sda1 already mounted or /sysroot busy
mount: /dev/sda1 already mounted or /sysroot busy
mount: /dev/sda1 already mounted or /sysroot busy
mount: /dev/sda1 already mounted or /sysroot busy

dracut Warning: Boot has failed. To debug this issue add "rdshell" to the kernel command line.

dracut Warning: Signal caught!

dracut Warning: Boot has failed. To debug this issue add "rdshell" to the kernel command line.
Kernel panic - not syncing: Attempted to kill init!
Pid: 1, comm: init Not tainted 2.6.32-358.el6.x86_64 #1
Call Trace:
 [<ffffffff8150cfc8>] ? panic+0xa7/0x16f
 [<ffffffff81073ae2>] ? do_exit+0x862/0x870
 [<ffffffff81182885>] ? fput+0x25/0x30
 [<ffffffff81073b48>] ? do_group_exit+0x58/0xd0
 [<ffffffff81073bd7>] ? sys_exit_group+0x17/0x20
 [<ffffffff8100b072>] ? system_call_fastpath+0x16/0x1b
panic occurred, switching back to text console

• Old kernel (i.e.2.6.32-131.0.15.el6.x86_64) boot is fine.