So, it means that the merchant wouldn't be able to make another txn with the bitcoin that I gave him until unless there is at-least one confirmation..?
They can, but it would be a very bad idea. Since your transaction might disappear and cease to exist, then if they choose to spend your transaction, that means that their transaction might also disappear and cease to exist. This means that the person that the merchant is paying might be concerned about that risk and refuse to supply theproduct or service that the merchant wants until BOTH your transaction AND the merchant's transaction confirms If your transaction vanishes, then the merchant might be accused of attempting a scam (and the merchant might accuse you of attempting a scam as well).
Smart merchants that care about their reputation will only spend confirmed transaction outputs.
And as long as there is no confirmation, my public key won't get debited and I can create another txn to someone else..?
Your public key will never get debited. That's not how Bitcoin works. There are no balances at the technical level of the bitcoin blockchain. There are only transaction inputs and transaction outputs.
But to answer the question that you are trying to ask...
If there is no confirmation, it would be possible for you to send the same bitcoins (spend the same transaction outputs) in another transaction to someone else. If you could convince a miner (or mining pool) to confirm this new transaction, then the old transaction would become invalid and would disappear.
Thank you Danny for explaining it..