HOSTING 
The application is locally hosted using VirtualBox
NETWORK 
The server is placed behind a firewall using static NAT. The address 10.1.0.3 is NATED to 68.XXX.XXX.X (PUBLIC IP - 1:1 NAT)
ISSUE 
DNS Functions --> list DNS zones --> check DNS I get the following error: 
rDNS/PTR record check: FAILED
rDNS/PTR = FAILED, check with your hosting provider!
rDNS A record = 10.1.0.3 [Check SenderBase] [Check RBL]
Checking with google if domain is hosted on this server: SUCCESS
ATTEMPTS AT FIXING THE ISSUE 
1) Created Reverse DNS zone from Shell. BIND to failed.
2) Created  Zone 3.1.0.in-addr.arpa.db using CWP7 GUI under which I listed 2 PTR records: one for the hostname and the other for the domain. 
i) BIND Did not fail and restarted successfuly. 
ii) the rDNS/PRT record check however failed.
Note: Valid A record for Hostname and PTR Record exist. 
Given the scenario above, my question is as follow: How does one create a reverse zone look up in the var/named/ directory successfuly in CWP7?