How to unzip password protected .zip file using Terminal?

Use the -P password argument to pass the password to unzip:

unzip -P password /Users/vikas/Desktop/as.zip -d /Users/vikas/Desktop/new\ folder

In case of AES encryption unzip won't work. In such case 7z do the trick perfectly:

7z x <archive_name>

you can use "Unarchiver" for it, works perfect.