MEX command dropping me to gnome terminal inside MATLAB

Hi, I am using MATLAB with R2014a. Whenever I am executing mex (with any input or flag) it is transferring me to the ubuntu terminal while keeping me inside the matlab GUI and I am completely clueless as to why such a thing can happen. Here, is a log of one such execution.

>> mex arrayProduct.c
bhokaal@jacobswks09:/scratch0/rcpn$ exit

exit

bhokaal@jacobswks09:/scratch0/rcpn$ exit

exit
Building with 'gcc'.

bhokaal@jacobswks09:/scratch0/rcpn$ exit

exit

bhokaal@jacobswks09:/scratch0/rcpn$ exit

exit

bhokaal@jacobswks09:/scratch0/rcpn$ exit

exit

bhokaal@jacobswks09:/scratch0/rcpn$ exit

exit

MEX completed successfully.

>>

Please note that the ONLY exit after executing exit command from me is the output of the terminal I am not typing exit twice.

When on linux terminal, I can use any of the terminal supported commands like grep, sed etc. The only way to get out of the gnome terminal and get back to MATLAB terminal(with ">>") is to keep executing exit a multiple times, till I land back to MATLAB terminal, otherwise, it keeps showing busy and sits idle.

Possible things tried - 1. Removed .matlab folder from home and then launched MATLAB again, which created .matlab folder again, but for no good.

I cannot re-install MATLAB because I am using a university machine, I can only make modifications to my machine. I checked on other machines without using my account the same thing and it worked perfectly. Any idea ?