SVN 1.6.2 Mergre is not handling merges gracefully

We are trying to merge a branch to trunk and we are facing the error "svn:
Attempt to add tree conflict that already exists" when we tried it through
the SVN command line. But when the same action was performed through
tortoise svn the merge is working fine. Please see the below output for the
merge that is being attempted by svn command line client.

SVN Command line client:

[raju_at_raju commontech]$ svn merge -r 279366:HEAD
svn://X.X.X.X/ivyrepository/partygaming/trunk/commontech/ .
--accept=postpone --username rajun --password xxxxxx --no-auth-cache
--- Merging r279367 through r295637 into 'trunk':
 U trunk/devlib
--- Merging r279367 through r295637 into 'trunk/lib':
   C trunk/lib/aal2wrap.jar
   C trunk/lib/libaal2sdk.so
   C trunk/lib/axiom-api-1.2.7.jar
C trunk/lib/servlet-api.jar
C trunk/lib/ognl-2.7.2-pg-fix.jar
Skipped 'trunk/lib/axis2-kernel-1.4.1.jar'
   C trunk/lib/commons-httpclient-3.0.1.jar
   C trunk/lib/inotify-java-0.1.jar
 U trunk/lib
--- Merging r279367 through r295637 into 'trunk/server':
   C trunk/server/src/test/com/pg/server/security
--- Merging r279367 through r295637 into
'trunk/server/src/test/com/pg/terracotta':
 U trunk/server/src/test/com/pg/terracotta
--- Merging r279367 through r295637 into 'trunk/server':
C trunk/server/src/main/com/pg/log4j/ComponentWiseLoggers.java
   C trunk/server/src/main/com/pg/utils/CaptchaUtils.java
--- Merging r279367 through r295637 into
'trunk/server/src/main/com/pg/ezecash':
 U trunk/server/src/main/com/pg/ezecash
--- Merging r279367 through r295637 into 'trunk/server':
C trunk/server/src/main/com/pg/site/sso/SSOHelper.java
C trunk/server/src/main/com/pg/site/sso/db/SSODBManager.java
*svn: Attempt to add tree conflict that already exists
*[raju_at_raju commontech]$

Tortoise SVN:

It is asking for the options on how to resolve the merge conflict and
handling the merge very smoothly. Please see the attached screenshots.

How is it that the tortoise svn is handling the merge properly but the
command line client couldn't. Is this propably a bug with the svn command
line client?

SVN Server Version:1.6.2
SVN Client Version: 1.6.2
Tortoise Client Version: 1.6.2

Regards,
Raju N.

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