MQTT client and HTTP module don't work together?

@Gordon

var   client = require("MQTT").create('IP ADDRESS', options /*optional*/);
....
function setup () {
         wifi = require("ESP8266WiFi_0v25").connect(Seri­al2, function(err) {

        // reset the n/w before the connection
        wifi.reset(function(err) {
            throwError(err);
            // SSID, Access Point PWD, Email id, Token Details, Session Token
            var apSSID = typeof f.read(0) !== 'undefined' ? E.toString(f.read(0)) : '',
                apPWD = typeof f.read(1) !== 'undefined' ? E.toString(f.read(1)) : '';
        
            if (apSSID) {
                wifi.connect(apSSID, apPWD, function(err) {
                    console.log('Device is successfully connected to the WiFi.');

                    // MQTT starts here
                    client.connect();
                    ....
           } else {
                    // creating the AP, running the HTTP server code
                    // after getting the WiFi creds and saving that to the ROM, 
                    apServer.close();
                    setup();
           }
}

If you notice, whenever there is a cold start, i instantiate the ESP8266WiFi_0v25 twice in the flow and that is the case where it does not work.

Every time after the cold start, it instantiates the ESP8266WiFi_0v25 once and it works fine.
Does it give any clue?
Does it need to do anything with the AP or Station mode of the Wifi module?