[Rails] An error occured while installing tilt (1.3.3)

I can't create a rails project successfully. I get an error with tilt
gem even though it is installed on my machine. Thanks. - Jag

nandigajDRJM:~ nandigaj$ gem list

*** LOCAL GEMS ***

actionmailer (3.2.3)
actionpack (3.2.3)
activemodel (3.2.3)
activerecord (3.2.3)
activeresource (3.2.3)
activesupport (3.2.3)
arel (3.0.2)
bigdecimal (1.1.0)
builder (3.0.0)
bundler (1.1.3)
erubis (2.7.0)
hike (1.2.1)
i18n (0.6.0)
io-console (0.3)
journey (1.0.3)
json (1.6.6, 1.5.4)
mail (2.4.4)
mime-types (1.18)
minitest (2.12.1, 2.5.1)
multi_json (1.3.2)
polyglot (0.3.3)
rack (1.4.1)
rack-cache (1.2)
rack-ssl (1.3.2)
rack-test (0.6.1)
rails (3.2.3)
railties (3.2.3)
rake (0.9.2.2)
rdoc (3.12, 3.9.4)
sprockets (2.4.0, 2.1.2)
sqlite3 (1.3.6)
thor (0.14.6)
tilt (1.3.3)
treetop (1.4.10)
tzinfo (0.3.33)

nandigajDRJM:~ nandigaj$ rails new demo
create
create README.rdoc
create Rakefile
create config.ru
create .gitignore
create Gemfile
create app
create app/assets/images/rails.png
create app/assets/javascripts/application.js
create app/assets/stylesheets/application.css
create app/controllers/application_controller.rb
create app/helpers/application_helper.rb
create app/mailers
create app/models
create app/views/layouts/application.html.erb
create app/mailers/.gitkeep
create app/models/.gitkeep
create config
create config/routes.rb
create config/application.rb
create config/environment.rb
create config/environments
create config/environments/development.rb
create config/environments/production.rb
create config/environments/test.rb
create config/initializers
create config/initializers/backtrace_silencers.rb
create config/initializers/inflections.rb
create config/initializers/mime_types.rb
create config/initializers/secret_token.rb
create config/initializers/session_store.rb
create config/initializers/wrap_parameters.rb
create config/locales
create config/locales/en.yml
create config/boot.rb
create config/database.yml
create db
create db/seeds.rb
create doc
create doc/README_FOR_APP
create lib
create lib/tasks
create lib/tasks/.gitkeep
create lib/assets
create lib/assets/.gitkeep
create log
create log/.gitkeep
create public
create public/404.html
create public/422.html
create public/500.html
create public/favicon.ico
create public/index.html
create public/robots.txt
create script
create script/rails
create test/fixtures
create test/fixtures/.gitkeep
create test/functional
create test/functional/.gitkeep
create test/integration
create test/integration/.gitkeep
create test/unit
create test/unit/.gitkeep
create test/performance/browsing_test.rb
create test/test_helper.rb
create tmp/cache
create tmp/cache/assets
create vendor/assets/javascripts
create vendor/assets/javascripts/.gitkeep
create vendor/assets/stylesheets
create vendor/assets/stylesheets/.gitkeep
create vendor/plugins
create vendor/plugins/.gitkeep
run bundle install
Fetching gem metadata from https://rubygems.org/.........
Using rake (0.9.2.2)
Using i18n (0.6.0)
Using multi_json (1.3.2)
Using activesupport (3.2.3)
Using builder (3.0.0)
Using activemodel (3.2.3)
Using erubis (2.7.0)
Using journey (1.0.3)
Using rack (1.4.1)
Using rack-cache (1.2)
Using rack-test (0.6.1)
Using hike (1.2.1)

Gem::RemoteFetcher::FetchError: SSL_connect returned=1 errno=0
state=SSLv3 read server certificate B: certificate verify failed
(https://bb-m.rubygems.org/gems/tilt-1.3.3.gem)
An error occured while installing tilt (1.3.3), and Bundler cannot
continue.
Make sure that `gem install tilt -v '1.3.3'` succeeds before bundling.
nandigajDRJM:~ nandigaj$

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