I have following code which attached and launches the editable properly on the div elements in the HTML table. the table is generated via ajax call. I am able to update the back
Yes. Your AJAX function must return a String on which will be used on the textarea you just edited.
When I used this, my AJAX call returns 2 things, A Success/Fail flag, and the return message. I display the return message somewhere to notify the user that the operation is successful or not. I then use the callback function to actually update my target text area.