resolver directive doesn't fallback to the system DNS resolver (no replies)

Hello,
I am looking at how to use nginx's resolver directive (http://nginx.org/en/docs/http/ngx_http_core_module.html#resolver) to address this one issue i am facing. I have a host for which there is already an entry in the system DNS resolver (verified using nslookup/dig) but when i specify the same host in the proxy_pass directive inside a location block, i get the following error thrown in nginx.log
015/01/05 14:24:13 [error] 22560#0: *5 no resolver defined to resolve ...

Seems like nginx is not falling back to the system DNS resolver in case the 'resolver' directive is not used. Isn't this incorrect behaviour ?

Thanks
-Kunal

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