diff --git a/server/src/com/cloud/network/NetworkServiceImpl.java b/server/src/com/cloud/network/NetworkServiceImpl.java
index c4effc96271..878d2a82bc6 100755
--- a/server/src/com/cloud/network/NetworkServiceImpl.java
+++ b/server/src/com/cloud/network/NetworkServiceImpl.java
@@ -1868,11 +1868,13 @@ public class NetworkServiceImpl extends ManagerBase implements  NetworkService {
 
             // If networkCidr is null it implies that there was no prior IP reservation, so the network cidr is network.getCidr()
             // But in case networkCidr is a non null value (IP reservation already exists), it implies network cidr is networkCidr
-            if (networkCidr != null && ! NetUtils.isNetworkAWithinNetworkB(guestVmCidr, networkCidr)) {
+            if (networkCidr != null) {
+                if(! NetUtils.isNetworkAWithinNetworkB(guestVmCidr, networkCidr)) {
                     throw new InvalidParameterValueException ("Invalid value of Guest VM CIDR. For IP Reservation, Guest VM CIDR  should be a subset of network CIDR : " + networkCidr);
+                }
             } else {
                 if (! NetUtils.isNetworkAWithinNetworkB(guestVmCidr, network.getCidr())) {
-                     throw new InvalidParameterValueException ("Invalid value of Guest VM CIDR. For IP Reservation, Guest VM CIDR  should be a subset of network CIDR :  " + network.getCidr());
+                    throw new InvalidParameterValueException ("Invalid value of Guest VM CIDR. For IP Reservation, Guest VM CIDR  should be a subset of network CIDR :  " + network.getCidr());
                 }
             }