My fresh installation of MS SQLSERVER 2014 in Windows Server 2012 was not successful due to the error mentioned in the title of this post. Its resolution is presented below:

  1. I remove the SQLSERVER 2014 installation using the Control Panel ->Programs -> Uninstall Program.
  2. I did a fresh install by running the Setup as an Administrator.
  3. In the Server Configuration page after launching the setup and providing necessary details, I used NT Authority\SYSTEM  as startup account for Database Engine services.