Try using
set -x to check which lines of your script are run and which are not ('debugging').
Code:
#!/bin/sh
set -x
cd /home/servers
screen -dmS server1 ./mohaa_lnxded
PS: Don't open your box more then is needed. I hope you changed the permissions of ../servers/ to 777, not /home. Even 777 for servers is probably to open, 755 should do.