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Server side validations are not working and buttons are getting wiped out.

I have a lookup field on my form (standard model popup) and on right side have a default button of "Creating New". If I tries to create new record from this button and
submit the form with details, the server side business validations using business rules are not working. I tried with Result.Alert, Result.ShowViewMessage, Result.Message methods and also tries by adding Result.Canceled = true but not works. Only the client side validations from the xml controller is working such as allowNulls="false" and it shows the proper message.
To resolve the above issue now I am throwing exception so that it will show on the top in yellow bar. but after throwing such exception if we submit the form, the buttons or other controls exists on the parent form are getting wiped out.
The same issue we are facing though the the parent form is not popup.

Please suggest a fix as soon as possible.
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