Today, I have start working after 6 months with one of my existing Ruby on Rails application and found the mentioned error. And then found, jquery-rails removed the jQuery UI and recommended to use jquery-ui-rails or downgrade the gem version.
To use latest version:
Add jQuery UI in to the application.js:
//= require jquery.ui.all
Add jQuery UI CSS to application.css:
*= require jquery.ui.all
To downgrade the jquery-rails:
Lock the version in to an older version. My problem has been solved with 2.0.2
gem "jquery-rails", "2.0.2"