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If Desktop and Server are on the same server even so I have to install client 32 for oracle???
Yes, that is correct.
Chandan,
What version of the SQL Server Native Client do you have installed? You'll need at least the 2008 version to connect.
In the case of SQL Server, though, you run the Native Client installation that matches your OS - you cannot run the 32-bit SQL Server Native Client installation executable on a 64-bit machine.
http://resources.arcgis.com/en/help/main/10.1/#/Setting_up_a_connection_to_SQL_Server/002q0000003800...