I was trying to return an error to the call to the controller as advised in This link so that client can take appropriate action. The controller is called by javascript via
You need to decide if you want "HTTP level error" (that what error codes are for) or "application level error" (that what your custom JSON response is for).
Most high level objects using HTTP will never look into response stream if error code set to something that is not 2xx (success range). In your case you are explicitly setting error code to failure (I think 403 or 500) and force XMLHttp object to ignore body of the response.
To fix - either handle error conditions on client side or not set error code and return JSON with error information (see Sbossb reply for details).