Apologies Suresh, looks like I missed this while I was OOO. Could you confirm which version you are using? In order to run apps locally, on your system ... you will need to either use Dev Console (if Jive 6) or you can use Add-Ons (Jive 7+) and make sure that your system is also running the middleware service that hosts the app. I would check out Getting Started > Creating an App with the Jive Node SDK if you have Jive 7, if you have Jive 6, you will need to use the Dev Console application.
If you are having trouble getting your instance up so you can install DevConsole, you can try this.
Setting your Jive System Property to:
jive.appsmarket.gadget.url = http://apphosting.jivesoftware.com/apps/dev/jaf_apps/dev/dev-app-trunk/dev-app.gadget.osapi.xml
jive.devMode = true
jive.app.dev.install.ws = true
jive.apps.cache-control.default = false
Which will allow you to have a rudimentary app installer that requires you to simply paste in the app.xml URL. Hope that helps.