rajashekar, where did you upload your image? Can you post it to tinypic.com? People almost always like to have images to look at when giving advice on image processing - weird, huh?
Morphological closing always enlarges an image, unless your background (the paper) is the foreground (white) and your writing is actually the background (black). In that case closing will make the dark lines smaller and broken. I suggest you reverse the sign in your thresholding to make the text true (1 or white) and the background false (0 or black). If you insist on doing it in reverse like you are now, then try imopen() instead of imclose().
