Connection closed before receiving a handshake response

[sajan45]

I am using rails 3.2.22 and latest version of websocket-rails. I am stuck with this Rails version for now.
When I open the page with ws connection, I get this error in browser console:
WebSocket connection to 'ws://localhost:3000/websocket' failed: Connection closed before receiving a handshake response.
This is my first setup so not sure if this is a issue with my setup procedure or something else.
Below is the (bottom)part of the stack trace.

from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:46:in `encode'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:252:in `block in encode_json'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:252:in `each'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:252:in `map'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:252:in `encode_json'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:220:in `block in encode_json'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:220:in `map'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:220:in `encode_json'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:48:in `block in encode'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:77:in `check_for_circular_references'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:46:in `encode'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/json/encoding.rb:31:in `encode'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/activesupport-3.2.22/lib/active_support/core_ext/object/to_json.rb:16:in `to_json'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/websocket-rails-0.7.0/lib/websocket_rails/event.rb:141:in `serialize'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/websocket-rails-0.7.0/lib/websocket_rails/connection_adapters.rb:77:in `trigger'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/websocket-rails-0.7.0/lib/websocket_rails/event.rb:161:in `trigger'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/websocket-rails-0.7.0/lib/websocket_rails/dispatcher.rb:70:in `rescue in block (2 levels) in route'
    from /home/hb/.rvm/gems/ruby-2.3.1@ws_rails/gems/websocket-rails-0.7.0/lib/websocket_rails/dispatcher.rb:61:in `block (2 levels) in route'

Top potion of the full stack trace is just the many times repeatation of first 10 lines of above posted extract.