Thanks, that was informative. I studied on the SPDT and DPDT and will have to do some more study to understand them completely. Most importantly, I'm able to get an idea over the final circuit.
One more question that popped up, let's consider that 2-way switch is implemented with one switch controlled by Arduino and SPDT relay. I understand that the state of the light could be toggled using any of the switches. Would it be possible to read the current status of the light? The whole idea is to figure out if the light is on or off from a remote location and this helps me to toggle the current state or not. Hope I'm not missing something really basic.