I am using jQuery Validation Plugin 1.9.0 with jQuery 1.7.2.
I want my form to be validated with jquery validation plugin. It works fine in Firefox 20.0.1 and IE 10.
You are misunderstanding the purpose of .preventDefault(). It's not meant for preventing the default behavior of a function. It's meant for canceling the built-in behaviors of regular elements, i.e., remove the navigation and history from an anchor tag, etc.
See: http://api.jquery.com/event.preventDefault/
AFAIK, you cannot programatically turn validation on and off. Once you initialize the plugin with .validate(), there is no method to "un"-initialize it.
However, to simply use a "cancel" button, there are several methods... one is to make sure you keep the cancel button outside of the <form></form> and then use a click handler to do something else with it.
DEMO: http://jsfiddle.net/TZVA6/1
Or another method, as pointed out by Rocket Hazmat, is to give the button a type="button" attribute which prevents the default submit action.
DEMO: http://jsfiddle.net/TZVA6/2/