1/Which version of SQLDeveloper are you using the recent 4.0 EA or the Production 3.2.2?
2/I have not seen the error you mention (unless there is a typing error in the command).
3/There was a problem with 3.2.2 - need to set the PATH otherwise SQLDeveloper may get confused with another version of SQLDeveloper stored in /opt and referenced elsewhere in the PATH ('which sqldeveloper' to see where it is)
4/I had to use a full path for the file name i.e. /tmp/vg.html on my test case (which did not reproduce your issue) (*)
5/'force_print' in html script output is a bug
(*)export PATH=`pwd`:$PATH ; bash ./sdcli reports generate -report z -db DB_NAME -file /tmp/zzq4.html
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Thanks for the reply. I was using SQL Developer 4.0 EA1. I noticed that my problem was because of the space in the report name. See following link.