Hi Anirban,
Thanks for the help.
I tried running nginx on a different port by modifying /etc/nginx/sites-enabled/default I changed 80 to 8000.
As soon as this was done, erpnext started running on localhost as well as localhost:8000. However, over network I could access erpnext only on 192.168.1.7 and NOT on
192.168.1.7:8000
Strangely enough when I ran netstat -atlpvn I noticed that nginx is still running on port 80 . It seems that changing port number in /etc/nginx/sites-enabled/default doesn't matter to nginx. It is still running on same port.
However, it is still beyond my understanding that though nginx was still running on port 80, what was blocking erpnext earlier to run.
Regards
Satish