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2014-11-23 06:58 AM
Did a lot of groundwork to find out the actual problem and it worked out.
- It is not a problem with your antivirus password. No need to change it, whichever antivirus you are using.
- It is not a problem with your SIM or PUK password.
The problem is with the X-Alert for Xperia app of Sony (which has permission to lock phone and doesn't allow to navigate to the settings).
Disable the X-Alert Xperia app and remove from the Device administrator (Settings -> Security -> Device Administrator -> Click on X-Alert for Xperia and click Deactivate)
Also, from the app list, disable the X-Alert app.