HI Maduwanth,
It appears that the domain deletion process encounters an error because the domain is still enabled for email.
[ATTENTION: this on.microsoft.com is a default domain that can be used for systems comunication. Be carefull]
Check for Active Users or Services Associated with the Domain
If applies, remove the domain from ‘accepted domains’ for Exchange "Remove-AcceptedDomain -Identity <DomainName>"