Could someone provide some real world scenerios to understand the role played by session layer in OSI model.
Presentation Layer handles zip&unzip etc. Similarly what does session layer handle?
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The session layer isn't (really) used in the real world. You can regard it as a conceptual model or as a sublayer in the real-world application layer but it simply doesn't exist.
Sessions are present in many web applications, but most often the session handling is woven into the application, without any distinct sublayer.
The presentation layer is very similar. Some application-layer protocols have a somewhat well-defined presentation sublayer (e.g. HTML, or RFC 5322 for SMTP/RFC 5321), but there really isn't any standard in practice.