'systemctl daemon-reload' fails with error "No buffer space available"

Issue

• Everytime the command:

# systemctl daemon-reload

is invoked, it returns "No buffer space available".

• journalctl logs show similar message appearing during boot:

Tue 2016-08-23 09:48:23.033078 IST [s=07e3c6ba15454f5680e11135f4782d74;i=b9d2;b=d04e0061935f435aad852765bfc9b4ff;m=bd84733;t=53ab574960408;x=67f54d6728318a3]
    _UID=0
    _GID=0
    _BOOT_ID=boot_id
    _MACHINE_ID=machine_id
    _HOSTNAME=hostname
    PRIORITY=4
    SYSLOG_FACILITY=3
    SYSLOG_IDENTIFIER=systemd
    _TRANSPORT=journal
    _PID=1
    _COMM=systemd
    _EXE=/usr/lib/systemd/systemd
    _CMDLINE=/init rhgb
    _CAP_EFFECTIVE=1fffffffff
    _SYSTEMD_CGROUP=/
    CODE_FILE=src/core/dbus.c
    CODE_LINE=67
    CODE_FUNCTION=bus_send_queued_message
    ERRNO=105
    MESSAGE=Failed to send queued message: No buffer space available
    _SOURCE_REALTIME_TIMESTAMP=1471925903033078


Tue 2016-08-23 09:48:23.076678 IST [s=07e3c6ba15454f5680e11135f4782d74;i=b9d3;b=d04e0061935f435aad852765bfc9b4ff;m=bd8f071;t=53ab57496ad46;x=5575182bb58cac2c]
    PRIORITY=6
    _UID=0
    _GID=0
    _SYSTEMD_SLICE=system.slice
    _BOOT_ID=boot_id
    _MACHINE_ID=machine_id
    _HOSTNAME=hostname
    SYSLOG_FACILITY=3
    _CAP_EFFECTIVE=1fffffffff
    _TRANSPORT=stdout
    SYSLOG_IDENTIFIER=systemctl
    MESSAGE=Failed to execute operation: No buffer space available
    _PID=12017
    _COMM=systemctl
    _EXE=/usr/bin/systemctl
    _CMDLINE=/usr/bin/systemctl daemon-reload
    _SYSTEMD_CGROUP=/system.slice/initrd-parse-etc.service/control
    _SYSTEMD_UNIT=initrd-parse-etc.service