Thanks jumanji for confirming my probable solution. I found another user on this forum who had a backup related issue with the same model and he has thankfully agreed to send his winre.wim (Windows 7 Restore after installing XP on dell inspiron n5110
) Although he couldnt use the recover option, because his winre.wim was 250mb, i feel that he might have had some other issue, so i'll try to use his winre.wim and see if it works.
I tried contacting dell support over the phone and they said that there is no way to get the recovery partition working (even if you go to a dell service centre) except when your harddisk goes bad and they send me a new harddisk. The new harddisk in that case will have a fresh image so it should have a working recovery partition. They instead are sending me windows 7 installer DVD free of cost. So i think I should atleast be able to use that to get into the default Windows 7 repair your computer menu by booting into DVD and use windows restore. I was adamant on getting the restore functionality, but dell rep said there is no way and for such issues where windows is working fine, they dont replace the harddisk
Any chance you've been to a dell service centre which re-imaged the hard disk for you ?
I bet they should have some software which would re-image the harddisk to factory image.