Hi Sunil,
The log_mode=normal means that the log segment must be backed up before it can be re-used. With this log backup you also create the chain of log backups that you need to perform a restore and recovery. This is also true for a Point In Time (PIT) recovery.
The log_mode=overwrite means that the log segment is freed by a save point. This log mode is only useful in scenarios where you don't need to restore and recover the database. This might be in a sandbox or test system.
So when you tried the to do the PID recovery that was only possible because the log_mode=normal was set. The reason why it failed will be difficult to figure out with the limited info that you provided, but from what you told us here the PIT with log_mode=normal wasn't the cause of the error.
-- Hay