I have two div's (side by side) inside a parent div, i want right div to occupy 100% of remaining space (i.e. 100% - 200px) and should always stay next to left div (not below left div):
Since you have only one fixed width column, float it left and that is it. As for the second column, do not specify float and width; this makes sure it is 100% wide. But you must add a left margin; otherwise the second column will interfere with the floated column e.g.
<div id="wrapper">
<div id="left" style="background-color: Blue; height: 100px; float: left; width: 200px;"></div>
<div id="right" style="background-color: Aqua; height: 100px; margin-left: 200px;"></div>
<div style="clear: both;"></div>
</div>