Bouncing Behavior with Initial Velocity

Hi,

I have created two solid blocks and given a sliding contact type 7 to them. The block 1 is moving with initial velocity. I expect the block to move with initial velocity, make contact with the second block and at this point the initial velocity should reduce to zero and settle down.

But strangely the block is bouncing back after making contact. Could anyone please help with this?

I appreciate your help...