why doesn’t eclipse match the argument while doing code completion. In the following example it should have automatically matched the throwable. In stead it shows arg1 as the first option.

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The autocomplete options in Eclipse for auto-completed method arguments, start with the parameter names found in the source distribution (that contains the class with the method). If no source distribution is available, then it will use the parameter names as indicated in the binary distributions i.e. in the compiled byte code. This is the default behavior
If you want to change this behavior of inserting parameter names from source code or binaries to inserting the best guessed arguments (including local variables), then you can configure the auto-complete options of Eclipse to do so, as shown in the following screenshot:
This will produce the desired result of automatically displaying the options containing the list of best-guessed arguments. This also seems to avoid suggesting parameter names: