Hello @Ananda, I am sorry to hear that you didn't find your answer already in Community. I don't know much about your hosting environment but it just sounds to me like your upload size or timeout may need to be expanded? Can you tell us about your environment (shared hosting, WordPress, VPS...) and let us in on what you have already tried?
roy darling *my posts seem a lot shorter in my head
I'm having the same issue. Updated my wordpress site to 4.7.2 last week, the site went down temporarily but was up and running with no issues roughly 12 hours later.
Now, I'm trying to upload photos and I get the same http error - I have no idea what that means!
Were you able to get any help?
The only fix I was able to get was to open the file in Microsoft Paint, saving it and uploading it. I think the error has something to do with a corrupted file type, so saving it in another program fixes it?
I hope this helps anyone with future trouble. For reference: I was uploading .JPG images that were originally created in Photoshop (.PSD)