I had similar issue, this is how it was solved
xyz@ip :~/formsProject_SVN$ svn resolved formsProj/templates/search
Resolved conflicted state of 'formsProj/templates/search'
Now update your project
xyz@ip:~/formsProject_SVN$ svn update
Updating '.':
Select: (mc) keep affected local moves, (r) mark resolved (breaks moves), (p) postpone, (q) quit resolution, (h) help: r (select "r" option to resolve)
Resolved conflicted state of 'formsProj/templates/search'
Summary of conflicts: Tree conflicts: 0 remaining (and 1 already resolved)